Powell warns of the end of the year-end labor market programs
In view of the ongoing misery on the labor market in the USA, Federal Reserve Chairman Jerome Powell sees an urgent need for action by the state. It is the worst recession in a long time, and unemployment insurance programs expired at the end of the year, he warned a congressional committee on Wednesday. “I think this is a field to look at.” The lower income brackets are particularly vulnerable to this situation.
More than 22 million jobs have been lost due to the corona pandemic, of which only about twelve million have been won back so far.
Powell emphasized that smaller companies were also under pressure in the corona crisis. Many of them would have to fight to survive the winter. He thought it would be good if Congress could bring itself to help. Parliament had to decide what money would be used for this.
In the Congress, initiatives for a new multi-billion dollar Corona aid package have appeared again. On Tuesday, a group of Democrats and Republicans from both chambers of Congress presented a package worth $ 908 billion. A separate Senate Republican bill later circulated that Majority Leader Mitch McConnell said President Donald Trump would also approve. Funds of around $ 570 billion that have not yet been used are to be used. The Democrats were critical in their first reactions on Wednesday. Negotiations about further aid were broken off before the November 3rd election.
