5/11, 5:09 PM (Source: TeleTrader)
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Fed's Mester: Outlook bright despite jobs report

Federal Reserve Bank of Cleveland President Loretta Mester played down the importance of the "disappointing" rise in nonfarm employment in April, stating that "the outlook is still bright." She told Yahoo News that she expects the progress of the economic recovery to broaden and the labor market to strengthen this year as the country relaxes COVID-19 measures, including the reopening of schools, which will free more parents to seek employment, especially women.

Mester projected inflation will be elevated in comparison to low figures caused by the coronavirus pandemic last year, as well as supply pressure. Inflation should end the year above 2% but next year, "as the supply constraints are eased, inflation numbers will go back down and then, with the support of monetary policy and fiscal policy, we'll see those inflation readings move back up."

Breaking the News / DJ