In August, the US unemployment rate fell to 8.4%.
Federal Reserve chief Executive Jerome Powell said that due to a possible slowdown in economic growth, the Fed plans to control credit policy for a long time tightly.
“We think that the situation will be more difficult – because of those areas of the economy that were directly affected by the pandemic,” Powell said in an interview.
Although 1.37 million new jobs were created in the US last month, the total number of jobs recovered from the crisis was only about half of the total loss.
“We think that the economy will need low-interest rates to support economic activity for a long period of time… This will be measured in years,” Powell said. “No matter how long it takes, we will manage,” he concluded.
In August, the US unemployment rate fell to 8.4% from 10.2% recorded in July.
The Fed will issue a forecast on the future of the US economy at its next meeting, scheduled for mid-September. Thus, Powell’s statement is the last public comment by the US Central Bank until this time.
In March, the Fed cut rates to almost zero and launched a series of lending programs to support businesses and the public. The Fed also buys tens of billions of bonds every month to keep markets running smoothly.