The Fed: Powell Says Rural Poor Need Help With Education, Credit Access

By

Senior economics reporter

Fed Chairman Jerome Powell spoke at Mississippi Valley State University in Itta Bena, Miss.

Poor people in rural communities need more help with education, credit access and business ownership, Federal Reserve Chairman Jerome Powell said Tuesday.

At the national level, the data show “a strong economy,” Powell said.

“Unemployment is near a half-century low, and economic output is growing at a solid pace,” he added.

“But we know that prosperity has not been felt as much in some areas, including many rural places,” Powell said, in remarks to a conference on rural poverty sponsored by Hope Enterprise Corp. at Mississippi Valley State University.

The Fed chairman said 70% of the 473 “persistent poverty” counties in the U.S. are rural.

To alleviate the poverty, Powell stressed the need for more early childhood education in rural counties.

He also said “successful” communities must help residents start small businesses.

“Entrepreneurship has the potential to play a greater role in poor rural areas, particularly in areas whose residents are predominantly black and other people of color,” he said.

Access to safe and affordable financial services is vital in this regard, Powell said.

Revisions to the Community Reinvestment Act, now under consideration by the Trump administration, should “more effectively encourage banks to seek opportunities in underserved areas,” he said.

Earlier, Powell told students at the college that he did not think the risks of a recession had moved higher.

RECENT NEWS

When The Gate Comes Down

A Stress Test Rather Than a ScandalApollo Debt Solutions is not a blow-up story. It is something arguably more instructi... Read more

What If The Investment Industry Is Benchmarking The Wrong Things?

  Investment management is built around benchmarking.  Fund managers compare themselves a... Read more

SpaceX Is Looks To Make History

The Biggest Bet in Wall Street History: SpaceX's $1.78 Trillion IPOThere are moments in financial history that stop you ... Read more

Gyrostat June Market Outlook: When Low Volatility Conceals Structural Risk

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direc... Read more

Why Low Volatility Is Not The Same As Low Risk

Why Low Volatility is Not The Same As Low Risk Some of the worst-performing portfolios in... Read more

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more