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Fed Chair Finds Trump-Era Immigration Policies Still Harm Economy

Mount Equity Group Tokyo Japan > News > Markets > Fed Chair Finds Trump-Era Immigration Policies Still Harm Economy

Jerome Powell, chair of the Federal Reserve Board, speaks during a confirmation hearing before the … [+] Senate Banking, Housing and Urban Affairs Committee on January 11, 2022. (Photo by Graeme Jennings-Pool/Getty Images)

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Bad government policies are gifts that keep on giving. That is the message Federal Reserve Board Chair Jerome Powell delivered in a recent speech. Powell cited Trump-era restrictions on immigration that have led to a continued worker shortfall. Economists say recent events are further evidence that a lower supply of workers—which anti-immigration advocates and organizations believe is a good thing—is damaging and even destructive. Admitting fewer foreign-born workers can—and has—lead to shortages and labor shortfalls that harm the economy by limiting output and contributing to inflation.

Keeping inflation low is essential for an economy. High inflation erodes the value of earnings and leads…

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