Fed’s Bostic Cautions That US Economic Recovery is Very Uneven

October 19, 2020by Alister Bull, Bloomberg News

Some parts of the U.S. economy are coming back strongly while others are still struggling because of the coronavirus pandemic, said Federal Reserve Bank of Atlanta President Raphael Bostic.

“In some segments the economy is recovering and rebounding in a very robust way,” Bostic said Sunday in an interview on CBS’s “Face the Nation.”

“But in other segments, things like hotels and restaurants, small businesses, particularly in minority and lower-income communities, those places are seeing much more difficult situations.”

Bostic will be a voting member of the policy-setting Federal Open Market Committee in 2021. The FOMC will meet two more times in 2020.

The U.S. economy’s rebound from the steep pandemic-driven downturn is threatened by a new acceleration in coronavirus infections and the failure by Congress to agree on a fresh stimulus package, developments that appear to be weighing on an already-slowing labor market recovery.

“Whatever people are experiencing, there are a lot of other Americans out there who are struggling and are on the edge,” Bostic said.

The first Black regional Fed president in the U.S. central bank’s history, Bostic is viewed by some as a potential candidate to serve in a Joe Biden administration if the Democrat defeats President Donald Trump in November.

Biden’s economic team has highlighted the importance of improving diversity at the Fed and of devoting greater resources to researching racial inequality.

Bostic, who served in the Obama administration from 2009 to 2012 as an assistant secretary for policy development and research at the Department for Housing and Urban Development, deflected a question on whether he’d be interested in becoming a future Fed chair or Treasury secretary.

“There is so much going on right now that I am not thinking about that. I’ve got a pandemic. I’ve got an economic crisis. And I’ve got my own bank to worry about in terms of the policies that we’re doing,” he said. “So I’ll let things play out as they will and we’ll just see how that goes.”

___

(c)2020 Bloomberg News

Distributed by Tribune Content Agency, LLC.

Economy

US Jobless Claims Fall to 730,000 But Layoffs Remain High
Economy
US Jobless Claims Fall to 730,000 But Layoffs Remain High

WASHINGTON (AP) — The number of Americans seeking unemployment benefits fell sharply last week but remained high by historical standards.  Applications for benefits declined 111,000 from the previous week to a seasonally adjusted 730,000, the Labor Department said Thursday. It is the lowest figure since late... Read More

Fauci: Whatever Vaccine is Available, Take It
Health
Fauci: Whatever Vaccine is Available, Take It

WASHINGTON — Dr. Anthony Fauci says if a coronavirus vaccine is available, regardless of which one, take it. The top U.S. infectious disease expert told NBC on Thursday a third vaccine becoming available “is nothing but good news” and would help control of the pandemic. U.S.... Read More

GOP Rallies Solidly Against Democrats' Virus Relief Package
Congress
GOP Rallies Solidly Against Democrats' Virus Relief Package

WASHINGTON (AP) — Republicans rallied solidly against Democrats' proposed $1.9 trillion COVID-19 relief bill as lawmakers awaited a decision by the Senate's parliamentarian that could bolster or potentially kill a pivotal provision hiking the federal minimum wage.  Despite their paper-thin congressional majorities, Democratic leaders were poised to push... Read More

Retailers and Restaurants Take Control of Their Future
Economy
Retailers and Restaurants Take Control of Their Future
February 25, 2021
by Sara Wilkerson

Retailers and restaurants are taking control of their future by adapting to evolving consumer behaviors via technology use and operating efficiencies says a new study released from Square Inc. Square’s “Future of Retail” and “Future of Restaurants” reports provide a glimpse into what investments businesses are... Read More

Biden to Order a Review of US Supply Chains for Vital Goods
White House
Biden to Order a Review of US Supply Chains for Vital Goods

WASHINGTON (AP) — President Joe Biden is preparing to sign an executive order to review U.S. supply chains for large-capacity batteries, pharmaceuticals, critical minerals and semiconductors that power cars, phones, military equipment and other goods.  The United States has become increasingly reliant on imports of these... Read More

$1400 Check Could be Coming Your Way Soon
Congress
$1400 Check Could be Coming Your Way Soon
February 22, 2021
by Reece Nations

WASHINGTON — The House Budget Committee approved reconciliations to President Joe Biden’s proposed $1.9 trillion novel coronavirus relief legislation Monday, setting in motion the bill’s final vote in the full House of Representatives expected to follow this week.  If enacted, the legislation would provide $1,400 economic... Read More

News From The Well
scroll top