Fed’s Bullard doesn’t see significant future monthly job bumps
President of the Federal Reserve Bank of St. Louis James Bullard stated on Wednesday that he still believes around 500,000 new workers will be added to the labor market on a monthly basis going forward, half of what some other experts have been predicting.
Bullard asserted that it is hard to add around one million new workers per month, saying that the recent job numbers are in line with his line of thinking. Additionally, he noted that the pandemic is still influencing people on whether to return to the labor market, with factors ranging from fears of getting the virus in the services sector to childcare worries as schools are still closed.
Lastly, Bullard said that the projected numbers are still “gigantic” and that if the rate of employment were to continue for the next twelve months, employment levels would be back to those before the pandemic. Moreover, if that were to happen, combined with higher inflation levels, the Fed may need to raise the policy rates to help stabilize the economy and lower inflation.
Get involved!
Comments