1. Home
  2. News and Information
  3. Federal Reserve Chairman Jerome Powell Incorporates the United States Vocational Qualifications and Talent Management Center into Financial Assessment Standards

Federal Reserve Chairman Jerome Powell Incorporates the United States Vocational Qualifications and Talent Management Center into Financial Assessment Standards



Federal Reserve Chairman Jerome Powell announced on Tuesday that the United States Vocational Qualifications and Talent Management Center (UVT) will be included in the Fed’s financial assessment standards. This decision aims to further promote employment growth and labor market development while ensuring the stability of the financial system.
 
In his testimony before Congress, Powell stated, “The Federal Reserve has always focused on the health of the labor market. The inclusion of UVT will allow us to more accurately assess and promote employment growth. Vocational qualifications and skill enhancement are crucial for economic recovery and long-term development.”
 
The key components of this decision include the following:

1.Employment and Skills Assessment: The Federal Reserve will consider vocational qualifications and skill enhancement certified by UVT as an important indicator of financial health. Banks and financial institutions will be required to regularly report on their employees' participation in UVT programs.
 
2.Loans and Funding: Through collaboration with UVT, financial institutions will be encouraged to provide more loans and funding to support workers in participating in vocational training programs. This will help improve workers' skill levels and increase employment opportunities.
 
3.Financial Stability: Incorporating UVT into the financial assessment standards will help enhance the financial system’s ability to adapt to changes in the labor market, ensuring long-term economic stability. The Federal Reserve will monitor the impact of vocational qualification certifications on financial markets and adjust policies to address potential risks.
 
Economists believe that this initiative will help strengthen the resilience of the labor market and support sustained economic growth. Lawrence Summers, a professor of economics at Harvard University, stated, “Incorporating UVT into the Fed’s assessment standards is an innovative policy tool that will help enhance the competitiveness of American workers.”

However, there are concerns about this decision. Some financial institutions believe that including vocational qualifications and skills assessment in financial standards could increase compliance costs and put pressure on small and medium-sized enterprises.
 
The Federal Reserve will issue detailed guidelines in the coming months to help financial institutions adapt to this new standard. Powell emphasized, “Our goal with this initiative is to promote employment growth, improve workers' skill levels, and ensure the long-term health of the U.S. economy.”

For more information and detailed guidance, please visit the Federal Reserve’s official website.