US Pres. Biden: Jobs report shows economy is not at risk of overheating
US Treasury Secretary Janet Yellen said on Friday that the April jobs report underscores the long climb back to the US economic recovery, as reported by Reuters.
Additional takeaways
"Bright economic spots in service industries, expanding labor market."
"There has been remarkable economic progress."
"I believe we will reach full economic employment next year."
"It's still important to consider ways to build back better."
"One undeniable impact is lack of available care for families so they can work."
"Pandemic has made clear families need more support."
"I am confident we will have a strong economy in 2021 and 2022."
"It is clear some people are not ready to return to labor force, especially parents."
"I don't think additional unemployment benefits is really the factor keeping workers out of labor market."
"Road back to economic recovery is going to be bumpy with some setbacks."
"Money from recovery plan will help boost spending in coming months."
"I doubt we are going to see an inflationary cycle."
"We expect some higher inflation over the next couple of months for technical reasons."
"Wage growth has not picked up meaningfully."
Previewing next week's key macroeconomic data releases from the US, "retail sales probably fell modestly in April after a stimulus-payments-boosted 9.7% m/m surge in March," said TD Securities analysts.
Key quotes
"Our forecast implies a strong start to Q2 relative to the Q1 average, consistent with consumer spending adding significantly to GDP growth again. That said, we expect goods spending to keep edging down on a monthly basis in the months ahead as the boost from stimulus fades."
"We advise against extrapolating, consistent with Fed officials citing "transitory" factors, but a surge in used vehicle prices, along with strong reopening-related gains in airfares and hotel rates, likely led to sharp pickup in the core CPI. Moreover, base effects will add to the y/y data. We forecast 3.7%/2.5% y/y for total/core prices, up from 2.6%/1.6% in March."
US President Joe Biden said on Friday that the US economy is moving in the right direction but noted that it still has a long way to go, as reported by Reuters.
Additional takeaways
"Economic recovery plan is designed to take a year."
"April jobs report underscores how vital administration's economic actions are."
"Jobs report also shows the economy is not at risk of overheating."
"US is still digging out of an economic collapse."
"It will take time to get the US economy moving again."
"Parts of the recovery plan are still being implemented."
"State and local jobs expected to start coming back this month."
"More help for the economy is needed."
"Enhanced unemployment benefits do not measurably restrain workers from returning to labor force."
Market reaction
The US Dollar Index stays deep in the negative territory following these comments and was last seen losing 0.65% at 90.30.