WASHINGTON, June 21 (UPI) -- Federal Reserve Chairwoman Janet Yellen told a Senate committee Tuesday she is troubled that African Americans and Hispanics are still experiencing higher unemployment and that black families still have lower annual incomes than the nation overall.
"In the labor market, the cumulative increase in jobs since its trough in early 2010 has now topped 14 million, while the unemployment rate has fallen more than 5 percentage points from its peak," Yellen told the Senate Committee on Banking, Housing, and Urban Affairs.
"In addition, as we detail in the Monetary Policy Report, jobless rates have declined for all major demographic groups, including for African Americans and Hispanics. Despite these declines, however, it is troubling that unemployment rates for these minority groups remain higher than for the nation overall, and that the annual income of the median African American household is still well below the median income of other U.S. households."
The Fed report that accompanied Yellen's testimony showed that black households fared poorly compared to white households during the recession and that they have not made up that loss, The Wall Street Journal reported.
While the median household income for whites, Hispanics and Asians fell about 8 percent during the recession, the median income for black households fell 16 percent, the report said.
It further stated that median income for white, Hispanic and Asian households was back up to 94 percent by 2014, while black household incomes had rebounded just 88 percent.
Even before the recession, the median black household income was substantially lower than the median white household income - $40,000 compared to $67,000 in 2014.
During Yellen's last appearance before the committee, the Congressional Black Caucus challenged her to speak more on black unemployment, {link:Business Insider reported. : "http://www.businessinsider.com/yellen-testimony-before-senate-banking-committee-2016-6" target="_blank"} This time, she said it is important that unemployment gains be made across the board. She also said the Fed is committed to hiring diverse employees in its own offices.
"We have got to get the Fed to get off the dime and put the issue of African-American unemployment on the front burner," Rep. David Scott, D-Ga said. "That is the core of all of the domestic issues that we're facing."
The unemployment rate for all demographics combined fell to 4.7 percent in May. Yellen noted that this was mostly due to people no longer reporting that they are actively seeking work.
"A broader measure of labor market slack that includes workers marginally attached to the workforce and those working part-time who would prefer full-time work was unchanged in May and remains above its level prior to the recession," she said.
Still, she said, several other signs point to favorable labor market conditions. "One notable development is that there are some tentative signs that wage growth may finally be picking up. That said, we will be watching the job market carefully to see whether the recent slowing in employment growth is transitory, as we believe it is."
Yelen said that since she appeared before the committee in February "the economy has made further progress toward the Federal Reserve's objective of maximum employment."
Inflation has continued to run below the Fed's 2 percent objective, she said, but the Federal Open Market Committee expects it to rise to that level "over the medium term."
"However, the pace of improvement in the labor market appears to have slowed more recently, suggesting that our cautious approach to adjusting monetary policy remains appropriate."
