Richmond Fed President Thomas Barkin stated that the latest employment data indicates moderate job growth and a continuation of the low-hiring environment. Data released by the Bureau of Labor Statistics on Friday showed that nonfarm payrolls increased by 50,000 in December, while the unemployment rate edged down to 4.4%.
Barkin told reporters on Friday, "The delicate balance between an environment of moderate job growth and an environment of moderate labor supply growth appears to be continuing, which is encouraging." The Richmond Fed President pointed out that the current employment situation reflects the uncertainty faced by businesses, as well as productivity gains that enable employers to reduce hiring. He stated that Federal Reserve policymakers must continue to focus on the risks of rising unemployment and persistently high inflation. Central bank officials cut the benchmark interest rate for the third consecutive time last month, but given disagreements over the inflation and labor market outlook, they signaled uncertainty about further cuts. "Inflation has been above our target level for nearly five consecutive years, and while the situation is much better than it was two or three years ago, it has clearly not yet fully met the target," Barkin said. "Over the past year, the unemployment rate has risen, and job growth has been moderate," he said. "Therefore, I believe both aspects require attention."
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