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Powell Notes Improving Labor Market Conditions

FED
  • Says aggregate demand "remains very strong"; the rise in Covid cases along with the emergence of Omicron "pose risks to the outlook". But notwithstanding this, FOMC participants continued to foresee "rapid growth". Notes SEP GDP projections.
  • Notes "improving labor market conditions and very strong demand for workers" meaning "the economy has been making rapid progress towards maximum employment". Says recent job gains have been "solid" and unemployment falling "substantially" since the last meeting, with recent developments narrowing differences in employment across groups; labor force participation "welcome rise" in November, "but remains subdued". And "wages are rising at their fastest pace in many years."

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