Fed Officials See Strong Job Gains After April ‘Head-Scratcher’
“April’s disappointing employment report doesn’t change the upbeat outlook for the U.S. labor market amid strong consumer demand, Federal Reserve officials said. “We still think, despite these frictions, that job growth will be strong,” Federal Reserve Bank of Dallas President Robert Kaplan said Monday in an interview on Bloomberg Television with David Westin, adding that employers reported problems in attracting workers despite offering higher wages. “You will see fits and starts like we saw here. We still think the trend is going to be strong job growth and recovery, particularly as leisure and hospitality sectors and others open up.”
Europe Is Set to Take the Growth Baton
“The European economy just flopped into a double-dip recession, but it already seems to be bouncing back and could even start outpacing the U.S., providing another engine for global growth. Among the reasons for optimism: economies are reopening, the delivery of vaccinations are finally accelerating and the European Union’s multi-year joint stimulus fund is set to take off to complement already ultra-loose monetary policy.”
China’s Surging Factory Prices Add to Global Inflation Risks
“China’s factory-gate prices surged more than expected in April, fueled by rapid gains in commodity prices, adding to global inflation concerns. The producer price index rose 6.8% from a year earlier, its fastest pace since October 2017, following a 4.4% gain in March, the National Bureau of Statistics said Tuesday. The median forecast was for a 6.5% increase. Consumer prices increased 0.9% on year, slightly below the 1% gain projected by economists.”
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