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4/13, 6:59 PM (Source: TeleTrader)
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Barkin: US workforce doesn't align with employment needs

Federal Reserve Bank of Richmond President Thomas Barkin spoke at a virtual roundtable on Tuesday saying there is a risk that the United States workforce does not match the needs for employment, as the coronavirus crisis disproportionately impacted people who joined the workforce last and also hit their potential next job. He added that those on support payments are not eager to go back to work, while the numbers of retirees are increasing.

The Fed official described the US economy as one "in the easy box", where the unemployment is high and the inflation is low, which means the government will be stimulating the economy with stimulating policy.

Barkin also shared he believes that Fed rates have a real impact on inflation. He expects to lower asset purchases first, before moving rates. Meanwhile, the fed will only start tapering asset purchases when recovery progress moves closer to financial goals.

Breaking the News / LH