Jerome Powell, Federal Reserve Chairman said on Tuesday that the United States economy has been permanently changed after the coronavirus pandemic and it is important that the central bank adapt those changes.
Jerome Powell said at a Fed virtual town hall event for educators and students, “We're not simply going back to the economy that we had before the pandemic."
He said that we all need to carefully watch as the the country's economy continues to get through the covid pandemic and also tries to understand the ways that the economy has changed and what the suggestions for the policy.
Powell said that it is not yet clear if the highly transmissible delta variant of Covid-19 infection will have a further impact on the economy, the nation has already seen sseveral significant changes since the start pandemic, shutting the nation down in March 2020.
He highlighted that such changes range from the rise in remote work to restaurants offering more take-out meals, to real estate agents learning to show properties virtually.
Many giant companies have already made large investments in tech to adapt to the such challenges that the Covid-19 pandemic has thrown.
This trend is showing up in the jobs data with the slow recovery in industries that rely on public interactions, such as travel, entertainment and hospitality.
The chairman said there are millions of people who have lost their service sector jobs and remain out of work and need to be nurtured and that's a part of the recovery which is far from complete.
Speaking to the students and educators, he said that students who have lived through the Covid-19 pandemic will see the world differently.
At the town hall is an event started by Ben Bernanke, one of forerunner of Fed chairman which seeks to underline the importance of classes in economics.