The US economy came faster than expected, but recovery is still “far from complete”, Chair of the Federal Reserve Jerome Powell said.
Powell said that the US Federal Reserve will continue on the right track in order to return the US economy to the right track, and to help the Americans who are suffering.
Powell indicated that the economy is gradually strengthening, in a sign that gives investors reassurances about the strongest economy in the world.
He attributed this largely to the unprecedented fiscal and monetary policies that provided essential support to families, businesses and communities.
“However, the sectors of the economy most adversely affected by the resurgence of the virus, and by greater social distancing, remain weak, he Powell said.
“The unemployment rate — still elevated at 6.2% — underestimates the shortfall, particularly as labor market participation remains notably below pre-pandemic levels”.
He said the Fed will not lose sight of the millions of Americans who are still hurting, including lower-wage workers in the services sector, African Americans, Hispanics and other minority groups that have been especially hard hit.
Also, US Treasury Secretary Janet Yellen, who will participate in the session before the House of Representatives with Jerome Powell, today, Tuesday, is expected to confirm that the employment rate may return to the same as it was in early 2022 thanks to the stimulus plan approved by President Joe Biden.
Yellen, in written testimony prepared for delivery to the U.S. House of Representatives Financial Services Committee, said that with passage of the $1.9 trillion American Rescue Plan Act, “I am confident that people will reach the other side of this pandemic with the foundations of their lives intact.
“And I believe they will be met there by a growing economy. In fact, I think we may see a return to full employment next year.”