MNI BRIEF: Permanent Job Loss Could Be Material Risk- Bostic

Atlanta Fed President Raphael Bostic said Monday he sees the economic rebound turning into a two-speed recovery and more widespread job loss would present a material risk.

Though currently "comfortable" with the current stance of monetary policy, Bostic said the economic rebound since March has been a "less-than recovery." The Atlanta Fed leader also expects the Fed to "continue to reshape" the Main Street lending program and the municipal liquidity program.

Bostic noted that only half the roughly 22 million jobs lost in the first couple months of the pandemic since March have reappeared and permanent job losses rose from 2.3 million in May to 3.8 million in September. "Widespread permanent job loss could become a material risk to the recovery," he said in prepared remarks to SIFMA. "This would make recovery more difficult to sustain."