Comments from the Dallas Fed President:
- U-6 unemployment, at 10.5%, suggests a lot of labor slack but job openings ratio and quits rate doesn't
That's an interesting window into how the Fed is evaluating the jobs market.
- Labor market puzzle is a matching issue, it doesn't need further monetary policy easing
- Economy's supply issues may be structural and monetary policy is not well-suited to deal with it
- Says that some people on unemployment benefits are working cash jobs
- Says it wouldn't surprise him if savings rate stays higher than normal after pandemic
- It's my view it would be better to ease of the QE accelerator gradually sooner rather than having to hit the brakes later
