Federal Reserve Bank of St. Louis President James Bullard stated on Thursday that the labor market "remains strong," as indicated by the recent release of jobs data in the United States.
"Viewed in historical perspective since the 1980s, the current labor market situation is unprecedented, with measures of labor demand significantly exceeding measures of labor supply," Bullard noted. Furthermore, the policymaker argued that although the headline inflation figure declined in the past period, the rate could fluctuate driven by rising costs of food and energy.
"Policy rate is not yet in a zone that may be considered sufficiently restrictive, it is getting closer," Bullard explained. "During 2023, actual inflation will likely follow inflation expectations to a lower level as the real economy normalizes," he said.
