New York CNN —The labor market just won’t quit, but this could be another case of “good news is bad news” for the Federal Reserve.
But while job growth is a sign of a healthy economy, Fed Chair Jerome Powell has said that he wants to see more slack in the labor market in order to bring inflation down.
But in April, the unemployment rate reached 3.4%, with the 12-month average of unemployment reaching a record low of 3.6%.
Plus, the mass retirement of baby boomers, slowing of immigration rates and long-term health impacts of Covid have also permanently altered the labor market.
Why it matters: These changes have led many economists to say that the labor market doesn’t matter anymore, said Kathryn Rooney Vera, chief market strategist at StoneX.
Persons:
won’t, Jerome Powell, ”, Joe Brusuelas, Kathryn Rooney Vera, boomer, we’ve, “, Vera, Sam Stovall, Bryan Mena, Stovall, Jordan Valinsky
Organizations:
CNN Business, Bell, New York CNN, Federal Reserve, Gross, RSM, Labor, Fed Fed, CFRA Research, Federal, CNN, Handil Holdings
Locations:
New York, “