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According to the Federal Reserve Board of Governors, the unemployment rate for minimum-wage workers is over 20%.

Federal Reserve Board of Governors Lael Brainard will speak on March 1, 2017 at Harvard University’s John F. Kennedy Government School in Cambridge, Massachusetts, USA.

Brian Snyder | Reuters

The unemployment rate of US minimum wage workers is over 20%, and Federal Reserve Board of Governors Lael Brainard said he emphasized the importance of policy support for the economy.

The figure shows how uneven the recovery was as efforts to control the Covid-19 pandemic resulted in the largest quarterly GDP decline since the Great Depression.

“The damage caused by COVID-19 is concentrated in groups that are already being challenged,” Brenard said in a speech Wednesday. “K-shaped recovery remains very uneven in certain sectors and groups.
I am experiencing considerable difficulty. “

When the national unemployment rate drops from the pandemic peak of 14.7% to the current 6.7%, federal economists say the unemployment rate is likely to exceed 20% for earners in at least a quartile. I presume.

This is because the unemployment rate for blacks is 9.9% and the unemployment rate for Hispanics is 9.3%, while the unemployment rate for whites is 6%.

The Federal Reserve Board has prioritized “inclusive” employment and coordinated policies to make it happen. The new approach allows inflation to rise above the Fed’s 2% target and unemployment to fall below what was previously a higher indicator of inflation before the Fed raised interest rates.

Recently, central bank speakers have expressed a slightly different view of the future of policy, with some concerned that inflation will rise faster than expected.

“The economy is still far from our goals,” Brainard said, although he did not commit to a time frame for policy adjustments.

“We are strongly committed to achieving our goals for maximum employment and average inflation,” she said. “It’s too early to say how long it will take. The Commission has made it clear that we need to see substantial further progress towards our goals before adjusting our purchases. . “

The Federal Reserve Board buys at least $ 120 billion in bonds each month, fixing the benchmark short-term borrowing rate to near zero. The Federal Reserve Board continues to seek more financial support from Congress.

According to the Federal Reserve Board of Governors, the unemployment rate for minimum-wage workers is over 20%.

Source link According to the Federal Reserve Board of Governors, the unemployment rate for minimum-wage workers is over 20%.

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