Fed's Barkin: Strong demand to continue through 2021 and into 2022
The infrastructure program would be important for the US, Richmond Federal Reserve Bank President Thomas Barkin said on Thursday but noted that he is worried it could stretch available workers in key trades, as reported by Reuters.
Additional takeaways
"At all levels, people have more money to be choosy about jobs."
"Labor supply mostly an issue for firms paying lower wages, those offering over $15 an hour having less trouble."
"No specific analytic moment where debt-to-GDP is so high investors will demand higher rates."
"Strong demand will continue through 2021 and into 2022, supported by new business spending."
"Competition, markets, will determine whether work from home persists after full reopening."
"Any infrastructure bill would need to be matched with measures to build the needed workforce."
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen flat on the day at 90.75.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
