|

Fed's Barkin: Labour market is steady, but hiring remains uncomfortably narrow

Richmond Fed President Tom Barkin said the decline in the unemployment rate was welcome and described job growth as modest but stable. He also noted that hiring remains concentrated in healthcare and AI, leaving the overall picture uncomfortably narrow, adding that demand still looks healthy, while progress on inflation will take time, keeping upcoming data in focus.

Key Quotes

Drop in the unemployment rate is welcome.

Hard to find firms outside of healthcare or ai who are hiring.

Job growth is modest, very much in line with low-hiring and low-firing continuing.

The narrowness of hiring is "uncomfortable."

Do not hear the cost of interest being cited as a major problem for businesses.

In theory lower labour supply and lower job growth is a reasonable balance.

Not clear whether the job market will break towards more hiring or more firing.

Do believe there is a change in productivity, not just a data artefact.

Demand growth still seems quite healthy.

Coming data will be important; it is still not trivial that the Fed is still trying to catch up with gaps from the shutdown.

One of the benefits of the Fed system is having regional officials "outside the bubble" of Washington, D.C

On the housing market the real solution is supply; there need to be more houses built.

Jobs data can now be taken at face value.

On inflation, it will take more time to make up for missing reports from last fall.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold struggles to surpass $5,200

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid mixed ETF flows

The cryptocurrency market is showing subtle recovery signs despite heightened global uncertainty following the United States (US) and Israel attacks on Iran and the subsequent retaliations that have morphed into a wider Middle East war.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Bittensor extends recovery despite retail demand slump

Bittensor, a leading Artificial Intelligence token, is aging up above $190 at the time of writing on Wednesday. Steady price increases characterise the broader crypto market, with Bitcoin holding above $71,000 and Ethereum above $2,000.