Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge, Massachusetts, USA, March 1, 2017.
Brian Snyder | Reuters
The lowest-paid worker unemployment in the United States is 20% higher, a figure US Federal Reserve Governor Lael Brainard stressed the importance of policy assistance to the economy.
The numbers indicate how an inconsistent recovery has come as efforts to control the COVID-19 outbreak have resulted in the biggest drop in quarterly GDP since the Great Depression.
“The damage from COVID-19 is already in a challenging group,” Brainard said in a speech on Wednesday. “The K-shape recovery remains extremely uneven with some sectors and groups.
Experiencing great difficulties “
At a time when the nation’s unemployment rate fell from the peak of the outbreak of 14.7% to 6.7% today, Fed economists estimate the unemployment rate as the lowest quartile unemployment rate is. “Probably 20 percent higher,” Brainard said.
That’s because the unemployment rate for blacks is 9.9% and the Hispanic rate is 9.3%, while the rate for whites is 6%.
Fed officials have made “inclusive” employment a priority and have adjusted policies to try to make it. The new guidelines will allow inflation above the Fed’s 2 percent target and the unemployment rate will drop lower than it used to be an indicator of higher inflation before the Fed raised interest rates.
In recent days, central bank speakers have offered different views on the future of the policy, with some concerned about rising inflation faster than expected.
Brainard is not committed to setting a time frame for policy adjustments. But noted that “The economy is far from our target”
“We are very committed to achieving the highest employment and average inflation goals,” she said. “It is too early to say how long it will take. Have important implications for our goals before adjusting purchases. “
Fed flows are buying at least $ 120 billion in bonds each month and keeping their standardized short-term borrowing rates near zero. Fed officials continued to urge Congress to seek additional financial assistance.