Fed’s Goolsbee: Jobs reports like this will give us confidence the economy not overheating

• The more jobs reports you get like this, the more confident we can be the economy isn’t overheating
• Hit a bump in inflation at the start of the year
• The more we see jobs reports that look like pre-covid, the more confidence that there is that the economy is not overheating
• The Fed must get comfort that recent inflation is not a sign of re-acceleration
• What happened in the jobs market this year has to be reset based on estimates of higher immigration but we’re still trying to analyze that
• We have some cross-currents, there’s no question about that
• Are we on the long arc of last year where we saw inflation steadily coming down or some different environment?
• If we remain this restrictive for too long, we’re definitely going to he have to be thinking about the employment side of the mandate
• Manufacturing business contacts indicate ‘more of the same’ in a decent environment
• We don’t hear much input about supply chain bottlenecks anymore
• We didn’t have an advanced look at the jobs numbers

He didn’t offer much here and the market didn’t react to his comments.

This article was written by Adam Button at www.forexlive.com.