US economy healing but not fully recovered: Federal Reserve chief

Jerome Powell says ‘elevated’ unemployment rate of 6.2% ‘underestimates the shortfall’, underscoring stimulus policies.

The United States economy is “much improved,” says Federal Reserve Chair Jerome Powell, crediting Congress and the central bank both for providing “unprecedented” support, but at the same time warning that the recovery is still “far from complete”. “The recovery has progressed more quickly than generally expected and looks to be strengthening,” Powell said in remarks prepared for delivery to a congressional hearing on Tuesday morning. Household spending has risen, he said and the housing sector has more than fully recovered. “However, the sectors of the economy most adversely affected by the resurgence of the virus, and by greater social distancing, remain weak, and the unemployment rate – still elevated at 6.2% – underestimates the shortfall, particularly as labour market participation remains notably below pre-pandemic levels,” he said. “The recovery is far from complete, so, at the Fed, we will continue to provide the economy the support that it needs for as long as it takes.”