The Federal Reserve should start having a conversation about tapering sooner rather than later, Philadelphia Fed President Patrick Harker said on Friday, as reported by Reuters.
Additional takeaways
“Pandemic exacerbated labor shortage for skilled labor in manufacturing and some other sectors.”
“Issues with childcare keeping some women out of the labor force.”
“There is a question about whether unemployment benefits are affecting labor force.”
“These factors limiting labor supply are temporary.”
“Unemployment benefits may be affecting some people but it’s not the only factor.”
“Unemployment benefits will run off over the next couple of months.”
“More worried about giving people the sense that it’s safe to return to work.”
“Fed needs to follow the playbook of removing accommodation carefully, methodically so that we don’t surprise the market.”
“Looking for continued strength in the labor market before Fed starts tapering process.”
“Need about 11 million jobs added to close jobs hole when factoring in job growth before the pandemic.”
“Also want to see inflation averaging 2% over time.”
“Concerned about rising home prices locking out low and moderate-income families.”
“It’s really important to understand the market structure of digital currencies before moving forward.”
Market reaction
The greenback preserves its strength after these comments and the US Dollar Index was last seen gaining 0.35% on a daily basis at 90.05.
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