WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell says that the strong U.S. economy is masking the struggles of many families in lower-income communities.
Powell says those communities still have not recovered from the declines in home values that occurred when the housing bubble burst more than a decade ago.
Powell said Monday that many low- and moderate-income homeowners saw their wealth stripped away as home values dropped. That meant they could not tap the equity in their homes to send their children to college or start a new business.
Powell says these activities are “the basis upon which a strong economy is built” and therefore more needs to be done to provide support.
His comments came in a video message to a Washington conference sponsored by the National Community Reinvestment Coalition.
