'Tapering' could still take a few months, Fed's Barkin says
By Alexander Bueso
Date: Wednesday 11 Aug 2021
(Sharecast News) - A top US central bank official said that the Federal Reserve may need a few more months before it can reduce its monetary stimulus.
In remarks to Reuters, Federal Reserve bank of Richmond president, Thomas Barkin, said the country's job market might take a few more months to recover enough for the Fed to be able to pare back policy accommodation.
The central banker also said that he wanted to see the employment-to-population recover by perhaps another half a percentage point to approximately 59%.
Especially important was to see whether the expiry of unemployment insurance led to a "big" increase in the number of Americans rejoining the work force.
"On the employment side you have a hypothesis that you are going to bring a lot more back in.
"On inflation you have a hypothesis that these things are transitory. I need to test both of these."
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