Federal Reserve Officials Highlighted Pandemic-Related Labor Market Restraints
Federal Reserve officials highlighted several pandemic-related factors that were suppressing the labor market’s recovery from COVID-19 during their last policy meeting in April, according to minutes released Wednesday by the bank.
Members of the Federal Open Market Committee (FOMC), the Fed’s monetary policy arm, “judged that the economy was far from achieving the Committee’s broad-based and inclusive maximum-employment goal” during their April meeting, according to minutes.
Many Fed officials said business contacts in their districts reported difficulty hiring workers and drawing more people into the labor market, “likely reflecting factors such as early retirements, health concerns, childcare responsibilities, and expanded unemployment insurance benefits.”
