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The Fed’s Bostic on why the South has the lowest unemployment rate in the country



FEDERAL RESERVEBANK ATLANTA

The southern region of the United States is currently experiencing the lowest unemployment rate in the country at 6.9%.

In particular, many southern states, including Georgia and Florida, were among the first to reopen parts of their economies, while business locks were in place in many parts of the country to curb the spread of coronavirus.

That is not the reason why unemployment in the region is so low compared to the Northeast, where the rate is three percentage points higher in August, said Atlanta Federal Reserve President Raphael Bostic.

“The virus came to us after being in California, the West Coast and New York. And then we got to learn some things about how we could possibly function and make our economy with the virus with us, “Bostic said on Sunday on CBS ‘” Face the Nation “.

“It has proven to be something that has been very useful,” he added.

That said, Bostic expressed concern over the region’s economic recovery path.

“In some segments, the economy is improving and returning in a very robust way,” he said. Hotels, restaurants and small businesses “in especially communities with minorities and lower incomes,” he said, “see much more difficult situations.”

“The segments where we do not see that recovery, that’s really what I’m worried about as we move forward.”

Bostic, who is the first black leader of a regional Fed, has been flown as the Democratic presidential candidate Joe Biden’s choice as either Federal Reserve chairman or finance minister if he wins the election.

Related: Who is who in Biden’s economic world

CBS ‘Margaret Brennan asked Bostic if he would be interested in filling one of those positions.

Bostic replied, “there’s so much going on right now that I’m not thinking about it,” but did not say he would reject any of the positions.


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