Comments from the Dallas Fed President:

Comments from the Dallas Fed President:
  • U-6 unemployment, at 10.5%, suggests a lot of labor slack but job openings ratio and quits rate doesn't

That's an interesting window into how the Fed is evaluating the jobs market.

  • Labor market puzzle is a matching issue, it doesn't need further monetary policy easing
  • Economy's supply issues may be structural and monetary policy is not well-suited to deal with it
  • Says that some people on unemployment benefits are working cash jobs
  • Says it wouldn't surprise him if savings rate stays higher than normal after pandemic
  • It's my view it would be better to ease of the QE accelerator gradually sooner rather than having to hit the brakes later