Richmond Fed president, Thomas Barkin, remarks in a WSJ interview
- Fed will need to continue to provide significant, sustained support
- Economy faces a slowing labour market recovery
- Coronavirus pandemic has proven harder to contain than expected
- Expects employment growth to lag behind spending
- Says keeping rates lower for longer could invite 'risky' behaviour in markets
- But now isn't the time to worry about those hazards
The remarks on the slower recovery aren't anything new but certainly sets up a renewed focus on labour market data, particularly after Powell's speech from last week.
This week's jobs report may not offer much indication of anything new but considering the market focus, it will be the key risk event to watch ahead of the weekend.
As for Barkin dismissing concerns about stocks rallying further, what else is new?
The full interview can be found here (may be gated).
