A Federal Reserve official has called on the US-based central bank to be “patient” in the face of its economic woes, addressing rising inflation concerns and pointing to “unequal” changes in the labor market.
The comments by Lael Brainard, the Fed’s chief executive, show that the US central bank is not ready to consider withdrawing its aid from the US economy, even though growth is rising and consumer prices are rising.
They also point out that Fed officials saw a weak report last week in April as a stimulus to their concern that accelerating US recovery this year would not be the same as the full uncertainty.
“We look good, but the risks are still there, and we are far from our goals. A recent report on retirement reminds us that the potential consequences can come from forward thinking and highlighting the need for resilience,” Brainard said.
“Being sick through temporary growth [in inflation] connected and reopened to help ensure that the necessary resources that will be needed to achieve our goals. . . it is not diminished because of rapid economic stability. ”
The comments of the policy makers come as a result of rising electricity prices and more and more evidence of the complexity of the commodity crisis as the global economy begins to emerge as a result of coronaviruses.
Advertisers are deeply concerned that consumer price hikes this year could be more pronounced than expected at present, leading to a rise in prices that could cause the Fed to impose monetary policy sooner than expected.
Brainard tried to address the fears on Tuesday, pointing out that production-related problems would improve over time and that the “lack of access to resources” in humanitarian groups would be addressed within “a few phases” as the vaccine campaign progressed. and the economic recovery continued.
“As long as the scourge of corruption and other reopening conflicts is temporary, they will not dare to exalt themselves,” he said. “The continuous increase in inflation will not only require that wages or temporary increases in re-opening, but also high hopes for continued inflation.”
April’s performance report, which highlighted the US economy adding 266,000 titles last month, much lower than its 770,000 job in March, was much weaker than most economists think.
“[The data] He reminds us that while there is good reason to expect high employment and the number of people who want to work well, there is no doubt that they will recover immediately, ”he said.
While some economists, Republican business and lawmakers also spoke of federal resilience unemployment benefits as the main reason why the demand for jobs seems to exceed the number of jobs from employees, Brainard also mentioned the “viral barriers” the main reason businesses face the challenge of hiring people.
He said this included health and safety concerns, opportunities for childcare and social mobility.
“There is good reason to expect a strong return to employment in the coming region, even though various groups affecting the demand and availability of goods could lead to unequal numbers,” said Brainard, a former Obama and Democrat employee. “But today, in any case, the work is still far from our goals.”