There are two economic trends that Federal Reserve chair Janet Yellen told Congress this week she finds “very disturbing.” Unfortunately, the Fed has very little power to fix either of them.
‘Very disturbing’ trend #1: Long-term unemployment
About 3.5 million Americans have been out of a job for at least six months.
This group accounts for 35% of all the unemployed.
“That’s a very disturbing trend, and something that we would like to be able to do something about,” Yellen said to the Senate Budget Committee Thursday.
‘Very disturbing’ trend #2: Income inequality
“We have seen a trend toward rising inequality in income and also in wealth. And I personally view this as a very disturbing trend that policymakers should be looking at and considering what is the appropriate response,” she said.
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