Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic noted on Tuesday that despite a recent slowdown in the US labor market, the jobs market itself is not showing signs of weakness, further highlighting that despite significant progress on inflation, overall price figures have not yet hit target levels.
Key highlights
Labor market has slowed down, but it’s not slow or weak.
Monthly job creation is above what is required to account for population growth.
The economy is close to the Fed’s targets and is moving closer.
Inflation rate is still quite a ways above 2%.
Still laser-focused on inflation but the job market is also salient.
There is a risk that the economy is too strong, and could hamper policy recalibration.
Businesses say that consumers have become much more price sensitive, curbing their ability to raise prices.
Hurricanes Helene and Milton potentially have significant implications for economy over next three to six months.
Shifts in supply chains means business cost structures will also change, something Fed will need to understand.
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