Federal Reserve Officials Are Cautiously Optimistic About the Labor Market | Global News Avenue

Federal Reserve officials said the labor market is in good shape as employment rebounded in the latest U.S. jobs report. But that doesn’t necessarily mean it’s time to cut interest rates, officials said.

“The labor market is still in good shape. Jobs are expanding and there’s about one job opening for every unemployed worker. So it’s a balanced labor market. That’s a good thing,” San Francisco Fed President Mary Daly said at an economic forum.

Chicago Fed President Austan Goolsby warned that the jobs report should be viewed in the context of previous months but said November’s results appeared promising. Reports indicate that the employer added 227,000 jobs this monthafter strikes and storm disruptions dampened hiring last month.

“The job market is cooling from the hottest we’ve ever seen to a period of sustainable full employment,” Goolsby told an economic conference in Chicago. “The past few months have felt like it’s been in that space. Wandering.”

The labor market is just one part of the data the Fed is examining ahead of rate decision

The labor market is one of Data points reviewed by Fed officials when Determine where interest rates are set. However, with the economy doing well, Cleveland Fed President Beth Hammack said there may not be much room lower interest rates Current levels when Fed officials meet in December.

“My overall view is that monetary policy is only somewhat restrictive at the moment, given strong economic growth, low unemployment, still elevated inflation and signals from financial markets,” Hammack said.

While Goolsby did not comment on whether the Fed should cut interest rates at its next meeting, he did think economic conditions will give way to more rate cuts in the future.

“Next year, if things go the way I expect, rates will be a little lower than they are now,” Goolsby said.

Friday is the last day for Fed officials to speak before the meeting. lockdown period Before December 17th and 18th Federal Open Market Committee (FOMC) Meeting.