FED CHAIR POWELL HIGHLIGHTS NEED FOR BIG STIMULUS, SAYS UNEMPLOYMENT CLOSER TO 10%
Brookings: American Rescue Plan Would Bring Unemployment Rate Down to 3.2%
Real unemployment rate is likely closer to 10% after factoring in misclassification errors, said Federal Reserve Chair Jerome Powell in a virtual speech at the Economic Club of New York. Citing the “largest 12-month decline in labor force participation since at least 1948,” Powell stressed the need for more fiscal support for the economy.
Economists are available to discuss the state of the economy, and the urgent need for additional Covid relief and stimulus. Reach out to [email protected] to get in touch.
Powell’s remarks are the latest in a series of bad news for the economy without another Covid relief package:
Without additional stimulus from Congress, the U.S. unemployment rate will not fall to pre-pandemic levels until 2024, according to the latest economic projections from the Congressional Budget Office. Read what economists had to say about these numbers here.
January’s modest jobs gains weren’t nearly enough to make a dent in the 10 million Americans who remain unemployed.
Nearly 8 million people fell into poverty from June to November of 2020 as the poverty rate jumped 2.4 points — the largest jump since the government began counting 60 years ago.
All told, 2020 was the worst year for economic growth since World War II.
President Biden’s proposed American Rescue Plan would boost GDP by 4% at the end of 2021, and bring the unemployment rate down to 3.2%, according to Brookings.