Cleveland Fed President Loretta Mester said that while April job report was “disappointing”, “outlook is still bright”. She said, “no doubt we are in a recovery but will see some ups and downs.”
She wanted to see “see more strength in labor market and expecting that this year.” But, “until we get a broader vaccination rate, we won’t be back to normal.”
On inflation, she noted that readings will be “elevated” for the next few months “because of math”. “Inflation will end the year above 2% but next year, as supply constraints ease, will come back down.”
