San Francisco Federal Reserve Bank President Mary Daly stated in an interview with Fox News that the drop in the unemployment rate to 4.3% in March is "good news," providing policymakers with "more time" to balance the risks from inflation and the labor market.
She indicated that the jobs report released on Friday is "genuinely good news" and "very reassuring." The data shows that "the economy and job market remain stable," even amid low readings on various confidence indices. Increased breadth in job growth is also "good news."
The labor market is showing no signs of deterioration, which "gives us more time to balance our risks, and the current level of monetary policy is well-positioned to do that work," she said.
Conflicts in the Middle East could affect both inflation and economic growth, though the persistence of these effects is difficult to judge. Consumers are feeling pressure from rising gasoline prices, which may impact spending.
However, the latest data shows consumers continue to spend, "indicating they have confidence in the economy," Daly added.
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