Speaker Mike Johnson (R-La.) claimed on X that Federal Reserve Chairman Jerome Powell admitted President Joe Biden and Vice President Kamala Harris‘ administration’s immigration policies are contributing to higher unemployment rates. Powell’s comments were made during a postmeeting press conference.

What Happened: Johnson shared a video clip where Powell was questioned about the recent job creation rates and the impact of immigration on the labor market.

Powell responded by indicating that the influx of immigrants has contributed to the rise in unemployment, alongside a slower hiring rate.

Powell said, “If you’re having millions of people come into the labor force, then—and you’re creating 100,000 jobs, you’re going to see unemployment go up.” He noted that the increase in unemployment is partly due to the high number of people entering the country and the slower rate of job creation.

Sharing Powell’s remarks, Johnson wrote, “The Federal Reserve Chairman admitted the massive influx of illegal immigrants under Biden and Harris has raised the unemployment rate. This administration’s refusal to secure the border is actively harming American workers and our economy.”

Additionally, Elon Musk CEO of Tesla Inc. has reshared Johnson’s post, amplifying the discussion.

See Also: 10 ETFs Investors Secretly Bought Before The Fed’s Make-Or-Break Interest Rate Call

Why It Matters: The context surrounding Powell’s comments is crucial to understanding the broader economic landscape. Just a day before Johnson’s post, Powell had defended a significant 50-basis-point interest rate cut, emphasizing it was necessary to support the labor market and prevent economic downturns.

This rate cut, which brought interest rates down to a range of 4.75% to 5%, was the first in over four years. Powell stressed the importance of preemptive measures to maintain a strong labor market.

Moreover, the Federal Reserve’s dot plot indicated that policymakers anticipate further rate cuts, signaling a cautious approach to economic stability.

Johnson’s remarks also come at a time when House Republicans, including Johnson himself, are grappling with internal disagreements over a funding bill aimed at preventing a government shutdown.

Musk’s involvement in the discussion is notable, given his advocacy for simplifying the legal immigration process. Musk has previously called for easier and quicker legal immigration, highlighting the challenges faced by skilled labor in navigating the current system.

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Image via Federal Reserve

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote