Emphasizing the need to recover the labor market… Statement of support for additional stimulus measures
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(New York = Yonhap News) Correspondent Il-Hwan Ko = Jerome Powell, chairman of the Federal Reserve System (Fed), reaffirmed his position to maintain low interest rates and continue to buy assets for economic recovery.
The Wall Street Journal (WSJ) reported on the 10th (local time) that Chairman Powell said at an online seminar at the New York Economy Club that the labor market was still shocked after the novel coronavirus infection (Corona 19).
Chairman Powell stressed that in order for the economy to recover enough for low-wage workers to get jobs, they need to implement a patient and compliant monetary policy.
The WSJ explained that Powell’s remarks made it clear that the Fed would not raise interest rates or taper (reducing bond purchases) for some time.
Regarding the labor market, he repeatedly warned, “The prolonged unemployment situation not only negatively affects the lives of citizens, but also erode economic productivity. It takes a long time to reverse such negative effects.”
In addition, Chairman Powell ordered the government’s aggressive fiscal policy, saying that monetary policy alone is not enough for economic recovery.
He pointed out that “the government and the private sector must join forces to contribute.”
He said, “Workers and families suffering after the coronavirus outbreak need help, and many small businesses need help as well.”
Chairman Powell’s remarks are in line with those at a press conference after the Federal Open Markets Commission (FOMC) decided to maintain zero interest rates.
He stressed that the unemployment problem was serious at the time, and “it is important to get the unemployed to get their jobs back as soon as possible.”
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2021/02/11 05:31 sent