ITTA BENA, Miss.–In remarks at an event sponsored by an affiliate of a local credit union, Federal Reserve Chairman Jerome Powell said the U.S. economy looks
strong, but it is also seeking ways to fight poverty in those “pockets” where it exists, such as the rural communities in Mississippi.
Addressing the “Rural Places, Rural Spaces: Closing Financial Service Gaps in Persistent Poverty” event, a policy forum hosted by Hope Enterprise Corp., an affiliate of with Hope Credit Union, Powell noted “unemployment is near a half-century low, and economic output is growing at a solid pace. But we know that prosperity has not been felt as much in some areas, including many rural places.”
Powell pointed to the U.S. labor force participation rate of 63.2%, which is about half a percentage point above where it was at the beginning of 2019, although it still lags behind most other industrialized countries.
While the unemployment rate of 3.9% represents near “maximum employment,” Powell said he recognizes that’s not the case everywhere.
How to Grow the Economy
"There are pockets of regions and demographics all over the country who are not at maximum employment," Powell told the event. "So, the obvious way to grow the size of the economy is to bring people into the economy are on the edge of it."
Powell added the Federal Reserve remains committed to programs such as the Community Reinvestment Act and in getting development funds to areas in need. Separately, speaking to an issue of interest to credit unions, Powell said, “Regulation and supervision need to be carefully tailored to suit the size and business model of different types of institutions. At the Fed, we have renewed our efforts to avoid unnecessary regulatory burden on community banks, which provide essential credit in their local communities.”
The event was held at Mississippi Valley State University.