Fed’s Clarida: There is still a big hole in labor market
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Fed’s Clarida: There is still a big hole in labor market

Federal Reserve’s Vice Chairman Richard Clarida told Bloomberg TV on Friday that there still is a big hole in the US labour market, as reported by Reuters.

Additional takeaways

“Wider current account deficit is not a concern to me.”

“We would like our treasury purchases to roughly match the profile of the wider market.”

“If inflation at the end of the year has not declined from where it is at the middle of the year might be ‘good evidence’ of inflation that is not transitory.”

“There is a lot of pent-up demand in the economy but also a lot of pent-up supply.”

“We expect both supply and demand to be in play as the year progresses.”

“The baseline expectation among forecasters is that most of the early rise in inflation this year will revert by year-end.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen gaining 0.25% on the day at 92.28.

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