Save people, save the economy

in conflict, he said.

In contrast, containing the coronavirus and tackling racial inequity would help spark an economic recovery, not slow it, he said.

“There are some people who think that emphasizing these (health) protocols means slower growth,” Kaplan said in an interview. “I’m saying the opposite.”

As the unemployment rate has skyrocketed across the county — past 13 percent in Texas in April and May, the highest rates on record — and since the killing of George Floyd has forced a national conversation on police brutality and race, Federal Reserve policymakers, including Kaplan, are speaking up about both health care and racial inequity.

But, they say, it’s not about politics. It’s about the economy.

“Racial equity is not only a social justice issue, but I believe it is an economic issue,” Kaplan said. “To the extent that we have more inclusive society and more inclusive economy, we will have a healthier society and healthier economy.”

‘Uneven’ COVID-19 response

Dallas Fed economists project Texas employment to decline 3.2 percent this year from 2019, equivalent to losing 408,000 jobs, and unemployment will hover near 9 percent by the end of the year, down from the recent peak, but nearly triple the rate in December 2019.

Whether the projections hold up will depend the state’s and nation’s ability to contain the spread of COVID-19, economists say. So far, Texas and the country appear headed in the wrong direction.

Texas reported nearly 6,000 new COVID-19 cases on Wednesday, the highest increase in a single day since the outbreak began.

The politicized rhetoric around

Dallas Federal Reserve Bank President Robert Kaplan is interviewed at his office.