Dallas Fed President Robert Kaplan said on Monday that household balance sheets are in much better shape but added the fear of inflation and the lack of access to child care are holding some workers back, as reported by Reuters.
“Demand appears very strong and what we’re seeing is supply constraints.”
“We still haven’t returned to as much in-person work as we may have by the fall.”
“Business travel still lags behind, demand for workers could firm further.”
“Some of the demand-supply imbalances in the labor market are structural, including retirements.”
“Wage issues could be more persistent.”
“Dallas Fed forecast is for headline inflation PCE to be 2.4% with risks to the upside.”
“There is a range of outcomes and the Fed should be applying risk management approaches.”
“Base effects will settle down.”
“In favor of taking the foot off the accelerator sooner rather than later.”
The US Dollar Index continues to push lower after these remarks and was last seen losing 0.45% on the day at 91.90.