Fed's Bullard: Expanded unemployment pay not appropriate as recovery takes hold
Workers are currently given an extra $600 per week in unemployment benefits
St. Louis Federal Reserve President and CEO James Bullard discusses economic recovery, unemployment rates and reopening the country amid the coronavirus pandemic.
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WASHINGTON (Reuters) - Expanded unemployment benefits were an appropriate policy during the coronavirus shut down but would not be appropriate as the recovery takes hold, St. Louis Federal Reserve president James Bullard said on Wednesday.
FED'S BULLARD WARNS PROLONGED CORONAVIRUS RECOVERY COULD TRIGGER AN ECONOMIC DEPRESSION
Instead policymakers should consider incentives for workers to return to jobs if asked.
“That 100% replacement rate is totally appropriate during the pandemic adjustment...It would not be appropriate as we come out of it,” Bullard said. “You want to incentivize people” to work.
Workers are currently given an extra $600 per week in unemployment, but the additional benefit expires at the end of July.
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