Fed's Bostic: US recovery may be 'levelling off'
Atlanta Fed president, Raphael Bostic, speaks in an interview with the FT
Some interesting remarks there but the way I read it is that the Fed is still rather uncertain about how labour market conditions are going to develop moving forward, especially once government stimulus is taken off at the end of July.
- Rebound in the US economy may stall amid recent spike in virus cases
- High-frequency data had shown a "levelling off" of economic activity
- The trajectory of this recovery is going to be a bit bumpier than it might otherwise
- Trying to figure out if this is more of a sustained pattern, or just a pause
- Also trying to identify to what extent are business, job losses permanent
The recent virus developments also adds to that uncertainty and will only mean that the Fed will keep its more accommodative policies well in place for the time being.
The full interview can be found here (may be gated).