Loretta Mester said the March payroll report was better than anticipated, but that a lot more progress is needed to get the economy back to where it was before the pandemic.
It was a nice report, it's nice to see these numbers but we 're still almost 8.5 million jobs below where we were before the pandemic so we need more of those kinds of job reports coming out, she said Monday in an interview on CNBC. It was the first public reaction from a Fed official to the data, released on Friday. Employers added 916,000 jobs last month, blowing past economists' projections of a 660,000 increase.
More widespread vaccinations, pent-up consumer demand and support from fiscal and monetary policy helped boost activity, Mester said. But the rosier outlook does n't mean the Fed should begin tightening policy any time soon, added She. I think we need to be very deliberately patient in our approach to monetary policy and really focus on hitting those goals that we have for monetary policy, said Mester.
I 'm thinking that we 'll see a very strong second half of the year, but we 're still far from our policy goals. The Cleveland Fed Chief, who has been among the most hawkish policy makers in the past of worrying about inflation, is not a voter on the Federal Open Market Committee this year.
The second half of the year is likely to be temporary and may cause major spikes in prices as economic activity returns in pandemic sectors.
But inflation is unlikely to persist and the U.S. wo n't see runaway price increases, Mester said. Not that Mester was troubled by the recent run up in Treasury yields, which she said were ordered.
I 'm not concerned with the interest rate at this point in the ascendance of yields; I do n't think there is anything for the Fed to react to, said she.
For more articles like this, please visit bloomberg.com www.burlberg.com. Subscribe now to stay ahead with the most trusted Business News source.