UPDATED 8:06 AM PT – Thursday, February 11, 2021
Federal Reserve chairman Jerome Powell said ultra loose monetary policies will remain in place in the coming year. While speaking at the the Economic Club of New York on Wednesday, he noted the actual U.S. jobless rate stands at around 10 percent compared to an official reading of 6.3 percent.
“Experience tells us that getting to and staying at full employment will not be easy,” he stated. “In the near term, policies that bring the pandemic to an end as soon as possible are paramount.”
Powell added, more stimulus may be necessary to boost employment following COVID-19 shutdowns.
“At present, we are a long way from such a labor market,” he continued. “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.”
Speech by Chair Powell on getting back to a strong labor market: https://t.co/6dLhcqhjDk
Watch live: https://t.co/mO6WL1NNUX
— Federal Reserve (@federalreserve) February 10, 2021
The top central banker also said the Federal Reserve will not increase interest rates in the foreseeable future. Powell then called on Congress to add more fiscal accommodation.