Chicago Federal Reserve Chairman Goolsbee said Friday's jobs report will make him feel that the economy shows no signs of overheating. Mr Goolsbee, who did not say whether interest rate cuts were possible this year, said he was still waiting for more data to confirm whether inflation was heading towards the Fed's 2 per cent target.
He said: "PiggyrichescasinoWe had some problems with inflation at the beginning of the year. " He added that officials need to take a step back to determine whether this is a sign of renewed economic acceleration. "the more employment reports like this show that employment is stable, but clearly returning to levels similar to those before the COVID-19 epidemic, the more confident we are that the economy will not overheat."
Mr Goolsbee's comments followed the government's announcement of a modest slowdown in the US labour market last month. Employers added 17 percent last month, according to a report by the Bureau of Labor Statistics on Friday.Piggyrichescasino.50,000 jobs, the smallest increase in six months. Unemployment rose to 3.9% and wage growth slowed.
After the jobs report, investors now believe the Fed may cut interest rates in September.
The Federal Reserve held interest rates steady for the sixth straight meeting on Wednesday and expressed new concerns about inflation. Chairman Powell said it will take longer than previously expected to gain confidence in price pressure to return to the Fed's 2% target.
Earlier, Fed governor Bowman said inflation was likely to remain high "for some time", but added that she still expected price increases to eventually moderate as interest rates remained at current levels.
Economists say signs of a cooling economy may prompt the Fed to cut interest rates over time, but inflation data will be more important.
"if wages and employment continue to slow in the coming months, interest rate cuts may come sooner than expected," said Rubeela Farooqi, chief US economist at High Frequency Economics. We need to see more data to see if this is an episode or the beginning of a new trend. "