Powell highlights Fed’s commitment to ‘inclusive’ recovery

The Associated Press ^ | November 9, 2021 | By CHRISTOPHER RUGABER

[Oldeconomybuyer]

WASHINGTON (AP) — Inequality can prevent the U.S. economy from reaching its potential, Federal Reserve Chair Jerome Powell said Tuesday, and he underscored the Fed’s commitment to reducing unemployment as broadly as possible, including among disadvantaged groups.

“While monetary policy does not target any particular group of people ... we are attentive to disparities in the labor market, rather than just the headline numbers,” Powell said in remarks to a conference Tuesday on diversity and inclusion.

Powell’s comments illustrate one reason why the Fed has been hesitant to reverse its low-interest rate policies even as inflation has spiked to three-decade highs this year. Before the pandemic, the Fed kept its benchmark short-term interest rate pegged at nearly zero, and unemployment eventually fell to a 50-year low of 3.5%. The benefits of the strong pre-pandemic economy were widespread.

“Wages had been moving up, and meaningfully so, especially on the lower ends of the pay scale,” Powell said. “Many who had struggled for years were finding jobs. Racial disparities in unemployment were narrowing.”

The pandemic recession, however, fell hardest on lower-income workers and widened racial gaps, he said. A healthy recovery has started to reverse those trends.

[MattMusson]

“Until we can get a Recovery for Everyone - No One gets a Recovery!”

[MNJohnnie]

Donald Trump was wildly successful at “inclusive prosperity” Maybe they should repeat what he did.

[goodnesswins]

Wages had been moving up, and meaningfully so, especially on the lower ends of the pay scale,” Powell said. “Many who had struggled for years were finding jobs. Racial disparities in unemployment were narrowing.”

Maybe we should color our money....

[poconopundit]

I tell you what: the moment a Fed Chairman starts using code words like “inclusion”, you know your dollar is headed for trouble.

[Paladin2]

He mispronounced “inflative”.

[SaxxonWoods]

Ignore all that meaningless BS, here’s what matters:

The Bond Market, which is much bigger than the FED, thinks the FED is moving a bit too fast toward raising rates.

And until the Bond Market changes it’s mind, the FED isn’t raising rates. FED watchers and FED haters will eventually learn to ignore the FED and watch the Bond Market.

If they want to be better informed that is.

[libertylover]

Before the pandemic, the Fed kept its benchmark short-term interest rate pegged at nearly zero, and unemployment eventually fell to a 50-year low of 3.5%. The benefits of the strong pre-pandemic economy were widespread.

“Wages had been moving up, and meaningfully so, especially on the lower ends of the pay scale,” Powell said. “Many who had struggled for years were finding jobs. Racial disparities in unemployment were narrowing.”

Funny they didn't mention that this was by the Trump administration.

So, Trump "hates" minorities so much that he was helping them out of poverty?

I wonder if the writer still has a job this morning, or maybe it's OK because they didn't mention that these good things happened because of President Trump?

[Georgia Girl 2]

The Fed said the same thing just before the 2009 crash. So be warned.