- Says today’s report was “Somewhat disappointing”
- Says full employment possible within two years
- Still sees significant slack in labour markets
- Says slack keeping inflation below target
- Tighter job market will draw more into the workforce
- Patience is needed on removing stimulus
Adam likes to rag on the slack argument and I agree it is wearing a bit thin as far as excuses go by the Fed, but it’s all a matter of context. Yes the jobs picture is vastly improving but there are still many out of work and it’s still very much an employers market not an employees market. When that balance changes is when the slack argument can be kicked well into touch.
Fed’s Eric Rosengren
