Fed Gov. Michelle Bowman
Fed Gov. Michelle Bowman is speaking and says:
- There is a risk that a lack of childcare availability will continue to hold women back from participating in labor force which could be a drag on the US economy
- Many older women who left the labor force are unlikely to return including many women
- The loss of these workers may make it harder or even impossible in the near-term to return to pre-pandemic employment levels
- The fundamentals underlying the labor market assessment won't be the same going forward
- Monetary policy isn't the perfect tool for addressing issues with the labor market supply
- If women are participating in the labor market at lower rates that means maximum employment is somewhat lower
- We are looking at a situation where we may see inflation lasting longer than expected a few months ago
Bowman is speaking on "Diversity and the economic recovery". Her comments are congruent with Barkin's earlier comments that the labor shortages may outlast the pandemic.
Maneuvering through the demographics of the baby boomers retiring seemed to have corresponded with the pandemic. In addition, the dual benefit of a rising stock market and booming housing market is making that retirement decision easier for many as well.
