Summary
Jerome Powell, head of the Federal Reserve, talked about concerns regarding the "K-shaped" U.S. economy, where wealthier Americans are doing well financially, while lower-income citizens are struggling. Powell also mentioned possible inaccuracies in job growth data due to a lack of updated information from government surveys. The Federal Reserve has recently lowered interest rates to stimulate economic activity.
Key Facts
- Jerome Powell is the chair of the Federal Reserve.
- A "K-shaped" economy means wealthier people are financially improving, while lower-income individuals are facing challenges.
- Spending by lower-income households increased only 0.6% in September, compared to 2.6% for higher-income households.
- Powell expressed doubts about how long the "K-shaped" economic trend can last.
- There may be inaccuracies in job market data because surveys were not completed during a government shutdown.
- Powell warned that the current available data might overstate job creation.
- The Federal Reserve cut interest rates to the lowest in three years, to support the economy.
- President Donald Trump has criticized Jerome Powell for not making larger cuts in interest rates.
