London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Fed official: Getting women back to work is about 'our economic potential as a nation'

Fed official: Getting women back to work is about 'our economic potential as a nation'

America's recovery from the pandemic downturn has been rocky: Millions of workers - especially women - remain on the sidelines, while parts of the economy are booming and inflation is rising.

Getting people back into the labor force and into a job is now key to keep the recovery going and stop the economy from overheating, according to Minneapolis Federal Reserve President Neel Kashkari.

"We have to find a way to bring [women] back to work. This is about our economic potential," Kashkari told CNN's Poppy Harlow on Tuesday. "It is certainly about fairness about women and families. But it is also about our economic potential as a nation."

The US Chamber of Commerce said Tuesday that the nation's worker shortage is getting worse by the day.

Experts are struggling to disentangle the biggest reasons why people might choose to stay home, including access to child care, persistent virus risks and higher-than-usual unemployment benefits. Women have been hit particularly hard during the pandemic, as child care responsibilities still tend to fall on them and they were more likely to be forced to leave the workforce.

"I believe we're going to bring women back into the labor force and workers who have been displaced," said Kashkari.

Failing to do so would make the higher inflation readings more concerning, as it would call into question the efficacy of all the government stimulus.

Kashkari believes higher inflation numbers aren't here to stay and are just a temporary effect from the economy getting back to normal. That has been the Fed's go-to line for months now. Economists predict that prices might continue to rise faster than normal during the summer months.

Since the recovery picked up steam in the face of the full reopening, economists, investors and lawmakers have been concerned about the economy overheating.

With plenty of fiscal and monetary stimulus in the system, some worried that too much of a good thing would turn inflation up so high that people might stop spending. That would be very bad news for the consumer spending-dependent US economy.

Worrying about this might not be a bad thing.

"There was a lot of complacency in the years following the Great Financial Crisis when millions of Americans were on the sidelines. So it took 10 years to rebuild the labor market," Kashkari said.

"We cannot have another 10-year recovery. So while I appreciate the fact that some people are worried about inflation, they didn't seem that worried when millions of Americans were on the sidelines in the last recovery," he added.

As of April, America was still down more than 8 million jobs compared with February 2020, before the pandemic lockdown. Economists expect to see 664,000 jobs added back in May in next week's jobs report.

While that would be a great number in normal times, it hardly moves the needle in the pandemic economy.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×