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Fed board member: current employment and inflation are far from reaching the target | Anue Ju Heng-US stocks

Fed Director Lael Brainard said on Wednesday (24th) that the U.S. economy is still far from the Fed’s employment and inflation targets and is expected to continue to implement the current monetary policy until inflation further increases. And the labor market has improved significantly.

In his online speech at Harvard, Brannard said: “At this stage, in terms of employment and inflation, the U.S. economy is still far from reaching our goals. It will take some time to make substantial progress.”

Brannard said that policymakers will consider indicators such as wages, employment-to-population ratio and labor force participation rate when assessing the labor market. Fed officials will plan to maintain loose monetary policy until the average inflation rate exceeds 2%, Mild more than 2% over a period of time.

Under the framework of the average inflation target announced in August last year, will the Federal Reserve raise interest rates when the unemployment rate is still low but inflation is expected to rise, in order to allow the labor market more time to recover.

Brannard said that despite the gradual decline in the unemployment rate across the United States, the unemployment rate in various regions still reached double digits, and regional communities and labor representatives said that their communities were very depressed.

Fed officials said that the central bank’s past practices may hurt some workers by stopping the economy from growing before they feel the benefits of strong growth.


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