Projections released last week showed Fed officials expect the U.S. economy to contract by 6.5% this year, followed by 5% growth next year.
Those forecasts fit well with Powell’s remarks, anticipating a long, steady struggle for the U.S. economy, as opposed to a rigorous rebound. For example, policy makers’ median projections pointed to unemployment ending this year at 9.3%, and declining slowly to 6.5% by the end of 2021.
Worsen Inequality
Powell made two points related to race and inequality, first by noting the disproportionate impact of job losses on low-income Americans and minorities.
“If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing,” he said.
Unusual for a Fed chair, he also came back to subject of race at the end of his remarks, making reference to the recent national debate over police brutality and racial inequality.
“I speak for my colleagues throughout the Federal Reserve System when I say, there is no place at the Federal Reserve for racism and there should be no place for it in our society,” he said. “Everyone deserves the opportunity to participate fully in our society and in our economy.”
--With assistance from Craig Torres, Rich Miller and Catarina Saraiva.
This article was provided by Bloomberg News.