The labor market of United states “It’s still far” from the progress the Federal Reserve wants to see before it reduces its support for the economy, while current high inflation will ease “in the coming months,” said Fed Chair Jerome Powell in statements prepared for a Congressional hearing this Wednesday.
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“Inflation has risen remarkably and will likely remain high in the coming months before moderating,” Powell said, reaffirming the US central bank’s faith that current price increases, despite concerns they are raising about unanchored inflation, are on. the reopening of the economy and will be transient.
Meanwhile, “there is still a long way to go” to repair a labor market that is 7.5 million jobs far from its pre-pandemic level, with the burden falling more on lower-paid workers and major groups. ethnic and minority groups, and the overall participation rate is still depressed, Powell said.