Comments from Federal Reserve Governor Lael Brainard:
- Jobs report is a reminder than realized outcomes can diverge from projections, it underscores the value of patient
- Limited period of pandemic-related price increases is unlikely to durably change inflation dynamics
- We will remain attentive to the risk that inflation could prove to be persistent
- Sees Q2 growth stronger than Q1
- Recovery is likely to be uneven and difficult to predict
- Remaining patient through transitory inflation rise will help ensure that progress is not curtailed by premature tightening of financial conditions
- Good reason to expect a strong employment rebound
- If inflation proves to be less transitory, we have the tools to deal with that
The 'tools to tackle inflation' line bugs me. In the 1970s and 1980s the Fed had the tools as well. Developing market central banks crippled by inflation have the tools. The problem is that hiking rates isn't as easy as they would like to believe, especially with their sudden interest in lifting up the downtrodden.
More:
- Evidence suggests many workers want to return to work
- The virus and childcare are impediments
- I expect to see improvements in hiring
- household balance sheets are extremely healthy
- anticipates US economy recovery to be relatively strong compared to trading partners
- there is much less scarring than had initially been worried about
