Fed's Barkin: Labor market hasn't healed enough to taper bond buying – WSJ

Dhwani Mehta FXStreet

The Richmond Fed President Thomas Barkin dismisses tapering the US central bank’s bond-buying, citing that the country’s labor market has not recovered yet from the covid pandemic blow.

“Inflation could cool more than expected once the economic reopening process is complete,” he added while speaking in a Wall Street Journal interview Friday.

Additional quotes

“If the labor market can clear relatively quickly, then maybe it can happen sooner, but if it takes longer for the labor market to reopen, it goes a little later.”

“The employment-to-population ratio is important to him in determining when the central bank can dial back on the stimulus it is providing the economy. “

“Would like to see something just north of 59% before he believes it would be time to start reducing bond-buying.”

Market reaction

The US dollar is little changed on the above remarks, trading better bid near 92.20, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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