Unemployment in US may drop by year end: Fed Reserve

Los Angeles, June 11 (HS): Jerome Powell, chairman of the US Central Bank ‘Fed Reserve’, warned that economic growth would slow down due to the Corona crisis. The interest rate will remain zero till 2022 because of the economic recession, he said. He added that there was no justification for raising the interest rate amid the Corona crisis.

Powell further said the Federal Labour Department had added 25 lakh jobs in the month of May, raising the possibility of increase in employment by the end of the year. Despite this,  millions of people will have to deal with unemployment. He said that the Federal Labour Department had estimated 14.7 per cent unemployment in the month of April. However, with the opening of businesses in various states of US, the possibility of 10 million additional people getting employment was not ruled out.

After a two-day policy meeting of the Fed Reserve Executive Board, Jerome Powell who was addressing a Virtual Press Conference, Corona had come as a great shock and it was not right to predict future.