Yahoo intereview with Fed's Daly
San Francisco Fed president Mary Daly n a Yahoo finance interview says:
- Was not disappointed at April's jobs report. Expect volatility
- We are in a transition state, remain encouraged
- We shouldn't call it worker shortage. It's a bottleneck
- Labor market is in a state of flux, and there are many constraints
- Could see inflation above 2% this year but will be transitory
- It is not yet time to talk about tapering QE
- Fed policy is necessary to get economy back up to speed, but need to make sure financial system is resilient to shocks
- We are a long way from normmalization
Meanwhile, McDonald's franchisees are blaming hiring challenges unemployment benefits, and warned that inflationary time bomb will force them to hike big Mac prices. This is according to the Business Insider. The unemployment benefits are currently at $300 per week. At 40 hours a week that comes to $7.50 per hour. The $300 benefits are expiring in September.
Employers have anecdotally reported that candidates are applying for open positions but not showing up for interviews or turning down job offers. Some of the candidates have acknowledged they applied simply to meet a state's job search requirements to keep receiving benefits.
Personally, I went to a local fast food burger joint this weekend, and they had a sign up saying that the dining area would be closed until they could find enough employees. From signs I see, Arizona is paying up to $15 an hour.
Along with the ending of the $300 credit, full time school reopenings should help to bottleneck.
