Powell says the true Unemployment rate is actually 10%

 

Fed Chairman Jerome Powell spoke today about performance and responsibilities. Let us discuss the discussion.

To return to a strong work ethic

Consider Jerome Powell's remarks at the New York Economic Club today about a return to the stable business environment.

Despite the immediate need of recovery, we are still a long way from a strong market in which the results have expanded. Employment in January of this year was nearly 10 million lower than the level of February 2020, the decline being due to the lowest decline of the Great Depression.

After rising to 14.8 percent in April last year, the jobless rate fell to 6.3 percent in January. But the data reported unemployment at the time COVID expected a slowdown in the labor market. Most importantly, the global catastrophe caused the largest 12-month drop in employment since at least 1948.

Fear of disease and unemployment in the most affected industries, such as restaurants, hotels and entertainment, has led many people to withdraw from the workplace. At the same time, virtual education has forced many parents to leave the workplace to provide daily care for their children. In all, nearly 5 million people said they could not find work due to the outbreak in January. In addition, the Bureau of Labor Statistics reports that many unemployed are not segregated. If you correct this inconsistency and consider those who have been out of work since February last year without a job, the January unemployment rate could increase by nearly 10 percent. pua.

Unfortunately, even unreliable measures result in a slowdown in the labor market for African Americans who are at the highest risk. Total employment fell by 6.5 percent since February, but the decline in employment for workers in four quarters of wages was divided by only 4 percent. percent, while falling below quartile was as much as 17 percent.

In recent months, the improvement of labor costs has been halted due to the high cost of transmission. Specifically, entertainment and hospitality services were valued at more than 1/2 million in December and added to 61,000 in January.

There is no objection to this

I do not agree with- any of the above. In fact, he thinks about what I have written a lot.

 Here are the most important questions: What can you do about it?

Powell answers

In order to prevent financial losses in the market that could lead to a loss in inflation in areas where our key assets are often cut off, we now focus on the indicators. between 2 percent. This means that after a period when the economy rises below 2 percent, the market policy is likely to bring the average price above 2 percent for some time. so that the expectations in the period will be better than 2 percent The.

Given that people have lost their jobs and the ability that some will struggle to find a job after sports, rather than the financial support needed to get the maximum out of work. . There has to be a relationship, with the involvement of government and industry. The benefits of investing in national staff are enormous. Stable employment is more than just a regular salary check. It also makes sense, improves mental health, adds hope and benefits to employees and their families

Powell Q&A

Q1: How does compassion lead to so many jobs?

A1: It is not

Q2: Is the Fed involved in monetary policy?

A2: Yes

Question 3: Did the Fed like it when Congress debated fiscal policy?

A3: No, it is not. He wanted independence under Congressional oversight.

Question 1 is the most important question.

More money does not support work. What is it, it destroys the work. Businesses have to pay a higher price and can not afford to go beyond this.

In addition, financial policy creates a bubble of crisis and continues to plague unemployed people.

Unemployed people have to pay a higher rate, pu