Tags: Research | Racial | Disparities | Fed | Goals | Brainard

Research on US Racial Disparities Can Help Fed Reach Goals: Brainard

Image: Research on US Racial Disparities Can Help Fed Reach Goals: Brainard

Tuesday, 23 May 2017 07:03 AM

U.S. Federal Reserve policymakers have long argued that their main policy lever, setting interest rates, cannot fix the underlying problems that keep large numbers of Americans feeling left behind in a recovery the Fed has helped engineer.

But on Monday Federal Reserve Board Governor Lael Brainard became the latest policymaker to suggest that when white Americans persistently have lower unemployment rates than blacks, or when Hispanics renters are twice as likely as whites to face threats of eviction, economic growth may be stunted.

"While the policy tools available to the Federal Reserve are not well suited to addressing the barriers that contribute to persistent disparities in the labor market outcomes of different groups, understanding these barriers and efforts to address them is vital in assessing maximum employment as well as potential growth," Brainard said in remarks prepared for delivery to the Opportunity and Inclusive Growth Institute Conference at the Minneapolis Fed.

"This Institute could give us important insights on how far the overall economy is from full employment, as well as the barriers that could be limiting the economy’s potential, by studying labor market outcomes of men and women of different racial and ethnic backgrounds in more depth."

Brainard did not address the outlook for monetary policy or the economy in her remarks.

© 2017 Thomson/Reuters. All rights reserved.

 
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Economy
U.S. Federal Reserve policymakers have long argued that their main policy lever, setting interest rates, cannot fix the underlying problems that keep large numbers of Americans feeling left behind in a recovery the Fed has helped engineer.
Research, Racial, Disparities, Fed, Goals, Brainard
213
2017-03-23
Tuesday, 23 May 2017 07:03 AM
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