Image: President and CEO Neil Kashkari.Source: Federal Reserve Bank of Minneapolis
Federal Reserve President Neel Kashkari throws “wrinkles” on Thursday on the timeline for a new coronavirus infectious delta variant to restore labor markets and reduce federal reserve asset purchase programs He said there was a possibility.
“If we see a very strong labor market this fall, as I expected, we’re probably making’substantial further progress’,” Kashkari said. , Refers to the criteria set by the Fed before delaying the purchase of $ 120 billion in assets per month.
“For now, the wrinkles are Delta. If Delta slows the recovery of the labor market much slower, it will set me back,” he said.
Fed officials, including Chair Jerome Powell, downplayed the economic impact of the rapidly expanding delta virus, noting that past waves of infection did not delay recovery as expected. I am.
The labor market is still short of 7-9 million jobs as expected by this time before the pandemic. Many economists and federal policy makers are more likely that factors that keep people away from work (lack of access to childcare and closed schools, health concerns, pandemic unemployment benefits) have receded or ended in the fall. He says he hopes many will be able to get back to work.
“It’s so frustrating for all of us that the Delta variants are soaring,” Kashkari said. “A month ago, I was cautiously optimistic because it looked like the light was shining at the end of the tunnel … and I was able to get back to normal.”
He said Delta could discourage people from returning to jobs that require direct interaction and keep their children out of school. “There is still a lot of uncertainty in the future.”
Report by Anne Safir of Berkeley, California. Edited by Leslie Adler and Matthew Lewis.