Fed warns more cash is needed as US figures reveal widening inequality
Updated: Jul 29, 2020
Jerome Powell: pace of downturn ‘without modern precedent’
Lowest-paid Americans hit hardest by coronavirus pandemic
More evidence of how the coronavirus pandemic is widening income inequality has emerged after the Federal Reserve announced 40% of households earning less than $40,000 included someone who has lost a job since February.
The Federal Reserve chairman, Jerome Powell, released the figure on Wednesday as he called on US policymakers to do more to pull the country out of the economic mire.
“The scope and speed of this downturn are without modern precedent, significantly worse than any recession since the second world war,” Powell said
On Thursday, the Fed will release a report detailing who has been hit hardest by the pandemic downturn. April’s job report showed rises across the board but minorities have been badly affected and those in low-wage work – such as hospitality and retail – have been the first to lose their jobs