Why FOMC could resort to monetary policy normalization sooner than expected – WSJ
|The Wall Street Journal (WSJ), In an editorial opinion piece, explains why the Federal Reserve (Fed) could likely dial back monetary stimulus sooner than expected.
Key quotes
The Fed goal of maximum employment and why hitting it could come sooner than expected.
“2.6 million people retired since February 2020, according to estimates from the Dallas Fed. “
“Cleveland Fed President Loretta Mester said June 4 on CNBC. "Typically, when people retire, they don't come back into the labor force."
“Treasury Secretary Janet Yellen ... said on June 5 that while employment remains more than 7 million jobs below pre-pandemic levels, increased retirements could mean "we don't need to regain quite that many to get back to full employment."
“While current Fed officials have been less explicit in their public comments, they have signaled a similar openness. “
Note that the FOMC meets this week, June 15 and 16, to decide on its monetary policy.
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