How to stay healthy when you’re unemployed
The unemployment rate has risen in the US, and the economy is facing a difficult job market, the head of the Federal Reserve said on Wednesday.
Federal Reserve Chairman Ben Bernanke made his remarks at a conference in Washington where he said unemployment is at its highest since 2009, and he urged businesses to hire people and help them stay employed.
“As of this writing, we have a jobless rate of 7.3 percent,” Bernanke said.
In an annual report on Wednesday, the Bureau of Labor Statistics said the unemployment rate is 7.1 percent, the lowest since August 2009.
Bernanke, who is a Republican, spoke at the annual conference in which he made the case that the Federal Open Market Committee should buy up as much government debt as possible.
He said the Fed should have bought up $1 trillion of bonds by now to help the economy recover from the recession.
The Fed already has purchased $1.5 trillion in Treasury bonds and $1trillion of mortgage-backed securities in the aftermath of the financial crisis, but Bernanke warned against going overboard in buying the bonds.
If the Fed is worried about inflation, Bernanke added, they should hold back from buying as much debt as they can until inflation stabilizes.
More from the US:’The Fed should sell $1tn’The Federal Reserve is in the midst of the largest stimulus program in US history, buying $1Trillion in Treasury and mortgage-related securities, but the central bank is still short $1 Trillion in mortgage-linked securities, according to the latest data.
Bernanke said the central banks actions are helping the US recover from a sharp decline in the unemployment level, but it is still too soon to tell if the stimulus is working.
While the Fed has said it will continue to buy $1T in Treasuries, it has said the rate should rise as long as unemployment stays low.