“The US Federal Reserve will have no problem claiming further substantial progress in repairing the labor market by the time the phasing out begins,” it said Monday. St. Louis Fed President James Bullard, as reported by Reuters.
Featured statements
“The playbook on the set-up of the great financial crisis may not be the same one that was used this time.”
“The Fed will have to handle the phasing out differently this time in case the risk of inflation escalates.”
“The presumption is that the Fed would not raise rates until the cut is complete, but it could if necessary.”
“The Fed will have many months of improvement in the labor market before we do anything about policy.”
“Retirements have drastically changed conditions in the labor market.”
“The US economy is definitely booming, now past a point in GDP that would have been reached without the pandemic.”
“The continuation of reopening measures in the United States in the fall, and then globally, will give some years of growth above trend.”
“The level of employment prior to the pandemic is not the appropriate benchmark for measuring progress, given retirements from the labor market.”
Market reaction
These comments did not help the dollar find demand. At time of writing, the US Dollar Index was down 0.42% on the day to 91.93.
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