London Daily

Focus on the big picture.
Monday, Jun 30, 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
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×