Daily Times

Poor Americans are bearing the brunt of the US coronavirus downturn and may also take longer to recover, Federal Reserve Chair Jerome Powell said on Friday.

“Without question, this event has exacerbated really pre-existing disparities in our economy that were already troubling,” Powell said in an interview with National Public Radio. He said help should be given to people who have lost their livelihoods due to Covid-19 through no fault of their own — comments that come amid an impasse in Washington over a new aid package to offset the economic damage from the virus.

“The burdens of the pandemic have fallen to a greater extent on people at the low end of the income spectrum,” Powell said, especially low-wage employees who rent and have little savings, who are “very vulnerable to an extended period of unemployment.”

“I think it really does behoove us as a country, as a very wealthy country, to use our great powers to support people who did nothing wrong,” he said.

The Fed chair specifically raised concerns about families facing the loss of their homes, telling the broadcaster, “We shouldn’t let those people lose everything they have and have to move out or be evicted.”

“It could have significant macroeconomic effects over time. But it’s also just the right thing to do.”