Brainard: Pulling back support due to high stocks may hurt efforts to boost jobs
Any move by the U.S. Federal Reserve to limit its support for the economy because of surging asset prices would damage the conditions the central bank is helping create to spur job growth and the help millions still unemployed due to the pandemic find work, Fed Governor Lael Brainard said on Tuesday.
"Our actions are designed to create a strong rebound in employment for all Americans, and the way we do that is by ensuring financial conditions support credit to businesses who do the hiring and credit to households that may be buying cars that they need to work, for instance," Brainard said when asked at an event whether the Fed's actions were exacerbating economic inequality.
While it is true that prices of a variety of assets, such as stocks, are "quite elevated," Brainard said: "I don't see how it benefits the 8 to 10 million Americans who are still without jobs as a result of the pandemic to withhold needed support for that labor market healing because some investors are also benefiting."
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