Fed Chief: Job market key to greater equality

Federal Reserve Chairman Jerome Powell spoke Wednesday to a House Committee about the Fed and its role in boosting the world's economy. A greater job market is the key to combating inequality, he said.

By

National News

June 18, 2020 - 9:42 AM

Jerome Powell

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell stressed Wednesday that the federal government’s role in strengthening the U.S. market in the face of a recession is vital in preventing a worsening of economic inequality.

Powell said the the Fed would continue to deploy all its financial tools to help “get back as quickly as we can to a tight labor market.” And he reiterated his belief that Congress must avoid withdrawing its own rescue efforts too quickly or else the most disadvantaged households would disproportionately suffer.

The chairman’s remarks to a House committee came on the second day of his semi-annual testimony to Congress on monetary policy. As he had on Tuesday to the Senate Banking Committee, Powell stressed that the Fed would keep its benchmark interest rate, which influences many business and household loans, near zero and make full use of the numerous lending programs it has unveiled since the coronavirus struck.

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