Fed’s Chair Considers Benefits of Max Employment

The U.S. Federal Reserve looks at a wide range of indicators trying to extract as much observations as possible on how close the economy is to reach full employment.

Federal Reserve Chair Jerome Powell said Tuesday that the central bank will look beyond headline numbers to determine when it has reached its goal of maximum employment.

Speaking at a central bank conference on diversity and inclusion, the Fed chief argued that a wide variety of statistics are needed to tell whether economic strength has provided a benefit to everyone.

Powell indicated that inequality can prevent the U.S. economy from reaching its potential, and he underscored the Fed’s commitment to reducing unemployment as broadly as possible, including among disadvantaged groups.