Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Volcker Says Jobless Rate to Remain Above 6% for Two Years

Don't Miss Out —
Follow us on:
Former Fed Chairman Paul Volcker
Former Federal Reserve Chairman Paul Volcker said the unemployment rate may remain above 6 percent for at least another two years. Photographer: Peter Foley/Bloomberg

May 15 (Bloomberg) -- Growth in the U.S. remains too sluggish to cut the jobless rate quickly, leaving it a “long way” from satisfactory levels, according to former Federal Reserve Chairman Paul Volcker.

The unemployment rate may remain above 6 percent for at least another two years, Volcker said at a Brazilian-American Chamber of Commerce event in New York.

The economy “is growing, but not fast enough to reduce the unemployment rate in the way we would like to see,” Volcker said. “It’s declining because the labor force is not rising, and we’re getting a little more employment, but it’s a long way from being satisfactory.”

The U.S. unemployment rate dropped to 7.5 percent in April from 7.6 percent in March and 8.1 percent a year earlier. The rate was last below 6 percent in July 2008.

The Fed called the current jobless rate “elevated” in a May 1 statement. “Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated,” the Fed said.

Volcker helped cut the unemployment rate to an eight-year low of 5.7 percent in 1987, his last year as Fed chairman, after reversing interest-rate increases that brought inflation down from as high as 15 percent.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.