The Richmond Fed President Thomas Barkin dismisses tapering the US central bank’s bond-buying, citing that the country’s labor market has not recovered yet from the covid pandemic blow.
“Inflation could cool more than expected once the economic reopening process is complete,” he added while speaking in a Wall Street Journal interview Friday.
“If the labor market can clear relatively quickly, then maybe it can happen sooner, but if it takes longer for the labor market to reopen, it goes a little later.”
“The employment-to-population ratio is important to him in determining when the central bank can dial back on the stimulus it is providing the economy. “
“Would like to see something just north of 59% before he believes it would be time to start reducing bond-buying.”
The US dollar is little changed on the above remarks, trading better bid near 92.20, as of writing.
