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Powell Says Not Shooting For Particular Jobs/Vacancies Ratio

FED

Q: What would be a good job vacancies ratio? How much are you counting on wealth effects to help inflation, do you need another leg down in equity values?

  • A: Re vacancies-to-unemployment, we don't have a specific goal in mind. When we got to 1:1 in the late teens we thought that was a good number, but not shooting for a particular one: looking at wages and ultimately inflation.
  • We don't look at a single market, the equity market, the housing market: we focus on financial conditions broadly. All the financial conditions indexes, for example, which include equities but also credit spreads, etc.

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