Feds Harker speaking:
- Pandemic has exasperated labor shortages for skilled labor in manufacturing and some other sectors
- Issues with childcare is keeping some women out of the labor force
- There is a question about whether unemployment benefits are affecting labor force. He says these factors are temporary. It is affecting some people but it's not the only factor
- Children and elder care along with transportation are holding some workers back
- Unemployment benefits will run off over next couple of months
- He is more worried about giving people the sense that it's safe to return to work
- Fed to start having conversation about tapering sooner rather than later
- Fed needs to file the playbook of removing accommodation carefully and methodically so that it doesn't surprise the markets
- He is looking for continued strength in labor market before the Fed starts the tapering process.
- Need about 11 million jobs added to close jobs whole.
- Harker wants to see the inflation averaging 2% over time
- Putting the economy back on line after shutdowns is going to take time.
- He is quite optimistic
- He is concerned about rising home prices locking out low and moderate income families
Harker does not have a vote on the FOMC this year. He will be a voting member in 2023