Ex Fed Chairman Volcker Says Nations Face Prolonged Unemployment

Posted By on October 6, 2010

Former Federal Reserve Chairman Paul Volcker an adviser to President Barack Obama said he doesn’t expect consumer spending to spur growth, and the U.S. and other developed nations face the prospect of protracted joblessness.

“This has not been an ordinary recession,” Volcker, 83, said today in a speech in Toronto. It’s “very difficult to find a sector in the American economy that has any spark to it,” he said.

Developed nations may undergo “prolonged unemployment,” he said. “It’s going to take years to turn it around,” presenting an “enormous political challenge for all leaders.”

U.S. companies unexpectedly cut jobs last month as employment decreased by 39,000, the biggest drop since January, after a revised 10,000 rise in August, according to figures from ADP Employer Services. A loss of jobs raises the risk that consumer spending, the largest part of the U.S. economy, will retrench and halt the recovery.

About the author

Comments

Comments are closed.

Copyright © 2024 The Stated Truth