At a Thursday Senate Banking committee hearing on the Semiannual Monetary Policy Report to Congress by the Federal Reserve, Senator Reverend Warnock highlighted a three percent employment gap between the Black and white prime-age labor forces

During the hearing, Senator Reverend Warnock questioned the chair of the Federal Reserve, Jerome Powell, about what tools the agency has to close this gap

Senator Reverend Warnock’s questioning underscored the significant gap between Black and white prime-age labor forces

Senator Reverend Warnock: “We can appreciate progress, but a three percent gap is still significant. Would you agree that it is important to continue narrowing this gap?’ [Black and white prime age employment gap]”

Watch Senator Reverend Warnock’s full line of questioning at Thursday’s hearing HERE

Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), a member of the Senate Banking Committee, questioned Federal Reserve Chair Jerome Powell on the importance of narrowing the three percent gap between the Black and white prime-aged labor forces during a committee hearing.

Senator Warnock highlighted that in recent years, the gap has shrunk, but questioned Chairman Powell about the agency’s need for additional tools to help shrink the gap further. 

“We can appreciate progress, but a three percent gap is still significant. Would you agree that it is important to continue focusing on narrowing this gap? And if so, what tools does the Federal Reserve have to do this work?” asked Senator Reverend Warnock.

The hearing marked the first of the 2024 Semiannual Monetary Policy Reports to Congress from the Federal Reserve, which are written reports to Congress containing discussions of “the conduct of monetary policy and economic developments and prospects for the future.”

Watch the Senator’s full remarks and line of questioning HERE. 

See below transcript of key exchange between Senator Warnock and Federal Reserve Chair Jerome Powell:

Senator Reverend Warnock: “According to the Monetary Policy Report, the employment rate for the Black prime-aged labor force, that is persons between 25 and 54 years of age, reached a historical peek in 2023. The gap between Black and white prime aged employment dropped to a nearly 50-year low, to around three percent.”

SRW: “We can appreciate progress, but a three percent gap is still significant. Would you agree that it is important to continue focusing on narrowing this gap? And if so, what tools does the Federal Reserve have to do this work?”

Chair of the Federal Reserve, Jerome Powell: “It’s very important and the single best thing we can do is get price under control, get inflation under control, so that we can have a long expansion.” 

JP: “The record is clear that a long expansion really gives significant benefits to people at the low end of the income spectrum. Because the labor market gets very tight, inflation is low, and they benefit more than anybody. That is where we were before the pandemic, and we’d like to get back to that place.

SRW: “Thank you so very much […] I am happy to continue working with the chair to improve that difference.”

During the hearing, Senator Warnock also questioned chair Powell about the lack of general inventory in today’s housing market, the high price of homes, and the challenges these realities present to prospective homebuyers.