Fed’s Powell reveals biggest economic challenge over the next decade


Yuri Gripas | Reuters

Federal Reserve Board Chairman Jerome Powell speaks during his news conference after a Federal Open Market Committee meeting in Washington, December 19, 2018.

Sluggish productivity and widening wealth gap are the biggest challenges facing the U.S. over the next decade, Federal Reserve Chairman Jerome Powell said Wednesday.

Speaking at a town hall in Washington D.C. to a group of educators, the central bank leader said his greatest economic fears lie outside the Fed’s purview. Specifically, he called for more aggressive policies to address income inequality.

Wages at the middle and lower levels have “grown much more slowly” than those at the higher end, he said.

“We want prosperity to be widely shared. We need policies to make that happen,” Powell added.

For the chairman, the forum was a chance to take some lighter questions — he revealed that to relax he plays guitar and rides his bicycle — but he also turned serious when addressing the issues of the future.

Powell stressed the importance of increasing labor force participation and improving mobility between income classes, which is an area where he said the U.S. has lagged in recent years.

“That’s not our self-image as a country, nor is it where we want to be,” he said.

“There are policies that we need to do that everyone should be able to agree on that will change mobility, improve people’s chances and enable people to better take part in the workforce of the future,” Powell added.

Source link

Products You May Like

Articles You May Like

There’s a game-changing way for the disabled to save but few use it
Why a bitter legal battle could be ahead for Jeffrey Epstein’s estate
Taking basic Medicare with no backup insurance might be a costly error
Poker players don’t take all winnings from big tournaments
Nordstrom shares jump after delivering strong profit, even as sales weaken in second quarter

Leave a Reply

Your email address will not be published.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