• Latest
  • Trending
  • All

Fed Chair Powell says rates will stay low for a while, citing bleak jobs picture

February 10, 2021 19:39
Dollar lacks upside momentum due to lower Treasury yields

USD bulls remain on the offensive across the market

August 19, 2022 09:53
Stocks erase gains as cautious tone persists in the markets

Markets mixed amid persisting global uncertainty

August 19, 2022 09:43
Dollar lacks upside momentum due to lower Treasury yields

Buying pressure keeps building surrounding the US dollar

August 18, 2022 08:47
Risk demand prevails after FOMC minutes

Stocks trend lower after FOMC minutes

August 18, 2022 08:37
Dollar lacks upside momentum due to lower Treasury yields

US dollar maintains bullish trajectory

August 17, 2022 07:08
Global stocks retreat after a plunge on Wall Street

Global stocks mixed-to-higher, investors stay cautious

August 17, 2022 06:56
Dollar lacks upside momentum due to lower Treasury yields

USD demand persists across the market

August 16, 2022 06:49
Euro rises despite а stronger dollar

Risk mood turns more measured, euro threatens parity again

August 16, 2022 06:42
Dollar lacks upside momentum due to lower Treasury yields

Dollar buoyed at the start of the week

August 15, 2022 05:39
Investors stay nervous as tensions escalate

Investors start the week on a cautious note

August 15, 2022 05:25
Dollar lacks upside momentum due to lower Treasury yields

Dollar tries to shrug off selling pressure

August 12, 2022 09:58
Equity markets mixed ahead of the weekend

Markets struggle for direction ahead of the weekend

August 12, 2022 09:42
  • Terms & Сonditions
  • Contact
Saturday, August 20, 2022
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks erase gains as cautious tone persists in the markets

    Markets mixed amid persisting global uncertainty

    Risk demand prevails after FOMC minutes

    Stocks trend lower after FOMC minutes

    Global stocks retreat after a plunge on Wall Street

    Global stocks mixed-to-higher, investors stay cautious

    Euro rises despite а stronger dollar

    Risk mood turns more measured, euro threatens parity again

    Investors stay nervous as tensions escalate

    Investors start the week on a cautious note

    Equity markets mixed ahead of the weekend

    Markets struggle for direction ahead of the weekend

    Stocks climb marginally, pressuring the greenback

    Investors welcome cooling inflation, dollar sags

    Yellen failed to spook global markets

    Risk-off tone dominates global markets

    Stocks making recovery attempts, markets remain unstable

    Stock markets little changed amid cautious trades

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks erase gains as cautious tone persists in the markets

    Markets mixed amid persisting global uncertainty

    Risk demand prevails after FOMC minutes

    Stocks trend lower after FOMC minutes

    Global stocks retreat after a plunge on Wall Street

    Global stocks mixed-to-higher, investors stay cautious

    Euro rises despite а stronger dollar

    Risk mood turns more measured, euro threatens parity again

    Investors stay nervous as tensions escalate

    Investors start the week on a cautious note

    Equity markets mixed ahead of the weekend

    Markets struggle for direction ahead of the weekend

    Stocks climb marginally, pressuring the greenback

    Investors welcome cooling inflation, dollar sags

    Yellen failed to spook global markets

    Risk-off tone dominates global markets

    Stocks making recovery attempts, markets remain unstable

    Stock markets little changed amid cautious trades

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Fed Chair Powell says rates will stay low for a while, citing bleak jobs picture

Fed Chair Powell says rates will stay low for a while, citing bleak jobs picture

by FWNews
February 10, 2021 19:39
in News
0

Federal Reserve Chairman Jerome Powell on Wednesday painted a dour picture on the state of U.S. employment, saying continued aggressive policy support is needed to fix the myriad issues still facing workers.

Addressing the issue will require a “patiently accommodative monetary policy that embraces the lessons of the past” regarding the benefits that low interest rates bring to the labor market, the central bank chief told the Economic Club of New York.

Even though the economy has reclaimed more than 12 million jobs since the early days of the Covid pandemic, Powell said the U.S. is “a long way” from where it needs to be in terms of employment.

“Fully realizing the benefits of a strong labor market will take continued support from both near-term policy and longer-run investments so that all those seeking jobs have the skills and opportunities that will enable them to contribute to, and share in, the benefits of prosperity,” he said in prepared remarks.

The pace of job creation has slowed considerably.

Though the unemployment rate has fallen from its 2020 high of 14.8% to 6.3%, nonfarm payrolls rose by just 49,000 in January and fell by 227,000 in December. More than 10 million workers are still without jobs — 4.4 million higher than before the pandemic a year ago.

Powell further said the headline unemployment rate has “dramatically understated” the true damage, including the biggest 12-month drop in labor force participation since at least 1948.

Without misclassification errors that have plagued the Labor Department since the pandemic began in March, the unemployment rate would be closer to 10%, Powell added. He also noted that the impact has been particularly burdensome on lower earners, with employment among the bottom quartile falling by 17% during the coronavirus crisis, while the top tier has seen a decline of just 4%.

“Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared,” Powell said.

To address the disparities, the Fed six months ago adjusted its approach to full employment to make it a “broad and inclusive” goal and said it will not start raising interest rates until that objective is met. Central to the approach is a willingness to allow inflation to run a bit hotter than the Fed’s standard 2% goal for price stability.

Powell noted that in the latter years of the record expansion that ended a year ago, wage and employment gains began to be distributed more evenly while the unemployment rate fell, without the threat of high inflation. When the jobless rate fell in the past, the Fed would hike rates as a way to head off inflation, but will not do so now.

The Fed is keeping its benchmark short-term borrowing rate anchored near zero and is buying at least $120 billion of bonds each month.

While he said he is confident that Fed’s new approach will lead to better outcomes, he said monetary policy alone can’t do everything.

“Given the number of people who have lost their jobs and the likelihood that some will struggle to find work in the post-pandemic economy, achieving and sustaining maximum employment will require more than supportive monetary policy. It will require a society-wide commitment, with contributions from across government and the private sector,” he said.

Powell added that mass vaccinations will help as well as fiscal programs such as the Paycheck Protection Program, which provides loans to businesses that retain workers.

Share2Tweet1
ADVERTISEMENT
FWNews

FWNews

Track the pulse of the market

Related Posts

Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

USD bulls remain on the offensive across the market

August 19, 2022 09:53
12
Stocks erase gains as cautious tone persists in the markets
Fundamental analysis

Markets mixed amid persisting global uncertainty

August 19, 2022 09:43
14
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Buying pressure keeps building surrounding the US dollar

August 18, 2022 08:47
22
Risk demand prevails after FOMC minutes
Fundamental analysis

Stocks trend lower after FOMC minutes

August 18, 2022 08:37
22
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

US dollar maintains bullish trajectory

August 17, 2022 07:08
24
Global stocks retreat after a plunge on Wall Street
Fundamental analysis

Global stocks mixed-to-higher, investors stay cautious

August 17, 2022 06:56
27

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Fed lowers minimum loan level for small business lending program

October 30, 2020 11:12
10
Euro struggles below three-month highs, yen demand persists

Aussie loses ground further, cable at five-week lows

May 14, 2020 10:18
14
The central bank is widely expected to deliver additional stimulus measures in a bid to support the economy

Stocks struggle as investors turn more cautious

June 7, 2022 05:24
20

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews