Free Trial

Powell Flags Current Supply-Side Constraints

FED
  • Powell talks about supply-side constraints in the economy:
  • In some industries, supply constraints are restraining activity. (Notes motor vehicles and semiconductors.)
  • Labor market conditions have continued to improve. Demand is very strong, and employment rose 850k in June with the leisure and hospitality sector continuing to post gains. The labor market ha ways to go. Unemp of 5.9% understates the shortfall in employment, particularly as participation in the labor market has not moved up from the low rates.
  • Pandemic-related factors such as caregiving, Covid fears, and unemp insurance appear to be weighing on job growth. But should wane in coming months, leading to strong gains.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.