6/22, 9:33 PM (Source: TeleTrader)
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Labor demand 'remarkably strong' - Fed's Powell

United States Federal Reserve Chair Jerome Powell stated on Tuesday that the Fed is seeing a "remarkably strong" labor demand as the country starts to fully reopen.

Speaking to the House Select Subcommittee, Powell said that the country is "digging out of a deep hole" and that there is still a long way to go until the labor market recovers, but reiterated that most of the factors, including enhanced unemployment benefits, slowing down the labor market are only temporary. Moreover, he also noted that there seems to be a "speed limit" to the growth of the labor force as people are more willing to wait now on the right job for them and predicted it will accelerate in the fall.

On the other hand, Powell also commented on the job numbers saying that the active hires, which he labeled as "quite high," are being offset by those that are quitting or retiring from their current jobs, thus giving an indication on the lower-than-expected numbers.

Breaking the News / OL