10/05/2019 09:28:00 AM | Number of readings: 23
WASHINGTON (Reuters) - US Federal Reserve Chairman Jerome Powell on Friday called for "sound public policies" to help more Americans belong to the increasingly depressed middle class.
"The average income of middle-class families has grown more slowly since the 1970s than high-income families, resulting in a loss of income equality," Powell said.
In a speech to a conference on development research, Powell said more than 80 percent of middle-class people in the 1950s were able to make more money than their parents, while only half now do so.
This means that low-income families have a lower chance of belonging to the middle class to achieve "a basic level of economic security".
Powell believes that the reason for the decline of the middle class and the increase in income inequality is due to slower productivity and different employment opportunities based on education, place and race.
"These issues are vital and sound public policies can support families and businesses and help more Americans reach and stay in the middle class," he said.
"I think we can agree that achieving a basic level of economic security is essential," he said.