MNI TRANSCRIPT: Powell on Covid-19 Hitting Workers Hard

     WASHINGTON (MNI) - The following is the portion of a transcript from

Federal Reserve Chairman Jerome Powell's press conference Wednesday:

     Q: You noted a number of times over the last year that there has been a

broadening out of job gains with marginalized workers, people have been left out

of the recovery over the ten-year period, finally making job gains, and

particularly minorities but also many other workers. Do you worry that this

recession is going to fall hardest on those workers who struggled and just got

job gains in the last year or two, and that it may take years from now before

there are opportunities for them again?

     A: Yes. That is exactly what I worry about. 

     Unemployment has tended to go up much faster for minorities, and for others

who tend to be at the low end of the income spectrum and it tends to come down

faster as well but it tends to go up faster and be much much higher. We were in

a place only two months ago, we were well into, beginning the second half of the

11th year is where we were, and every reason to think that it was ongoing. We

were hearing from minority, low and moderate income and minority communities

that this was the best labor market they have seen in their lifetime. All the

data supported that as well. It is heartbreaking frankly to see that all

threatened now. All the more need for our urgent response and also that of

congress, which has been urgent and large, and to do what we can to avoid longer

run damage to the economy, which is what I mentioned earlier. 

     This is a exogenous event that, it happened to us, it wasn't because there

was something wrong with the economy. I think it is important that we do

everything we can to avoid that longer run damage, and try to get back to where

we were, because I do very much have that concern. I think everyone is suffering

here. But I think those who are least able to bear it are the ones who are

losing their jobs, and losing their incomes and have little cushion to protect

them in times like that. So yes, that is a very big concern.

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

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