(sda) Powell said this on Wednesday (local time) during an online event. Around ten million more people are still unemployed than before the coronavirus crisis. A return to full employment requires more than a “supportive monetary policy”, he said.
Powell called on both the new US government and the private sector to support the labor market and workers. He made it clear, however, that he sees the US Federal Reserve playing a key role in supporting politics in the coronavirus crisis: “We will support this with our instruments as long as it is necessary,” he added.
Powell also stated during the online presence at the Economic Club of New York that the recovery in the labor market had stalled in recent months. In view of the high level of uncertainty, withdrawing monetary policy support is out of the question before the pandemic is over.
The new administration under US President Joe Biden is currently trying to launch a huge new stimulus package. The target is 1.9 trillion US dollars. Among other things, it provides for aid to private households. However, some prominent economists warn of inflation risks as they consider the package to be too extensive.
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