Tags: Fed | Dudley | Jobs | Growth | Likely | Gather | Pace

Fed's Dudley: Jobs Growth Likely to Gather Pace

Friday, 01 Apr 2011 10:06 AM

U.S. jobs growth is likely to rise more rapidly in the coming months as the economic recovery gathers steam, but this is not a reason for the Federal Reserve to reverse course, a top Fed official said on Friday.

"We are still very far away from achieving our dual mandate of maximum sustainable employment and price stability," New York Federal Reserve Bank President William Dudley said, according to prepared remarks.

"Faster progress towards these objectives would be very welcome."

The president of the New York Fed has a permanent voting seat on the Fed's policy-setting panel. Dudley's recent views have been "dovish" on inflation.

At its last meeting, the Fed unanimously voted to keep its $600 billion bond purchase program unchanged. The program is scheduled to end in June.

Dudley was in San Juan, Puerto Rico, to address the E-3 Summit of the Americas. Earlier on Friday the U.S. government released its employment data for March, which showed a second straight month of solid gains and a decline in the jobless rate to a two-year low of 8.8 percent.

Dudley called the jobs data "good news" but said the Fed would need to see sustained strong employment growth to be sure that a "virtuous circle" — in which rising demand generates more rapid income and employment growth and leads to more consumer spending — has become firmly established.

While there is still uncertainty about the speed of the labor market recovery, Dudley said, he is "hopeful that jobs growth will increase more rapidly in the coming months."

Puerto Rico is part of the New York Fed's district.

© 2017 Thomson/Reuters. All rights reserved.

 
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U.S. jobs growth is likely to rise more rapidly in the coming months as the economic recovery gathers steam, but this is not a reason for the Federal Reserve to reverse course, a top Fed official said on Friday. We are still very far away from achieving our dual mandate of...
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2011-06-01
Friday, 01 Apr 2011 10:06 AM
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