Federal Reserve's Daly: Impressive employment report buys policymakers more time

San Francisco Federal Reserve Bank President Mary Daly said in an interview with Fox News that the unemployment rate falling to 4.3% in March is “good news,” giving policymakers “more time” to balance the risks on both inflation and the labor market.

She said:

The employment report released on Friday is “real good news,” “extremely reassuring”;

Even with various confidence indices remaining low, the data shows that “the economy and the job market are holding steady”;

Greater divergence in employment growth is also “good news”;

There are no signs that the labor market is deteriorating, which “gives us more time to balance risks, and the current level of our monetary policy is just right for carrying out this work”;

The regional conflict in Iran could affect both inflation and economic growth, and it is still unclear how long its impact will last;

Consumers are under pressure due to rising gasoline prices, which may affect consumer spending;

Latest data shows consumers are still continuing to spend, “which indicates that they have confidence in the economy,” she said.

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Author: Liu Mingliang