Fed's Barkin on the wires
the Richmond Fed Pres. Thomas Barkin (nonvoter) is on a online event and says:
- Employers and technology in healthcare say they cannot find workers
- Lower skilled service workers like waiters do not have skills for jobs available
- My outlook is for slow, steady recovery with backstops
- Excess savings are a backstop more than a stimulus
- More likely to revisit fiscal prudence in coming months
- Spiking government spending is behind us as country moves to divided government
- Fed's balance sheet is trading short-term debt for longer duration debt. Not printing money
- Inflation is hard to find in the numbers
- a broader rollout of vaccine would not be until summer at best so next few months could be challenging
- Expects to see a vaccine approved by year end
- in large parts of country take out plus outdoor dining helped a lot of restaurants
- Still seem uncomfortable eating indoors leading to tough winter for restaurants with limited options for outdoor dining
- Without fiscal stimulus will see households struggle
- There is room for targeted stimulus bill
- Sees room for bill that includes unemployment insurance
Meanwhile Fed's Mary Daly will be speaking in 10 minutes. She will be a voting member in 2021
