![]() ![]() Fairfield County in Connecticut has fully recovered from the pandemic. The strength of the labor market is evident in parts of the Federal Reserve's Second District. And in April, the employment-to-population ratio for those between the ages of 25 and 54 reached the highest level since 2001. In addition, the unemployment rate is at a historically low level of 3.4 percent. Similarly, quit rates have been gradually declining, but are above pre-pandemic levels. Still, the ratio of job openings to unemployed far exceeds levels prevailing before the pandemic, when the labor market was very strong. For example, job openings have come down from their peak level in March of last year. Other indicators show that labor demand is gradually slowing, yet remains very strong. At the national level, job growth has been robust, with monthly job gains averaging about 220,000 over the past three months. I'll first discuss what this means for employment. Although we have seen some signs of a gradual cooling in the demand for labor-as well as for some goods and commodities-overall demand continues to exceed supply. Since the pandemic, imbalances between demand and supply have persisted throughout the economy, leading to high inflation and a tight labor market. Specifically, price stability is essential for the economy to reach its full potential and to sustain maximum employment over the long term. The goals of our dual mandate are intrinsically linked. The FOMC is mandated by Congress to promote maximum employment and price stability. As the Mandalorian would say, "Price stability.īefore I continue, I need to give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System. The Federal Reserve is committed to bringing inflation down. Inflation remains too high, and high inflation is hardest on those who can least afford to pay higher prices for food, shelter, and transportation. What I do want to talk about is inflation. ![]() Now, I promise I won't spend my time talking about the weather or baseball. I am often asked whether I am fan of "Star Trek" or "Star Wars," and my definitive answer is, "yes." The weather is warmer… Baseball season is well underway… And it's the month when people around the world celebrate "Star Wars," one of the all-time great franchises. I'm also pleased to be here during my favorite month of the year. It's a special privilege for me to speak to the Club today. As chair of the Economic Club of New York, I often have the honor of introducing speakers to our forums.
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