Fed's Barkin: Surge in demand put producers behind the curve in hiring

The US economy is likely to return to a trend growth level by the end of the year, Richmond Federal Reserve Bank President Thomas Barkin said on Friday, as reported by Reuters.

Additional takeaways

"Staffing is a somewhat surprising supply-side challenge."

"The drop in participation, the surge in retirees, benefits are constraining the labor supply."

"Jobs report shows frictional challenge matching available workers to jobs."

"Surge in demand put producers behind the curve in hiring."

"Inflation will occur this year but businesses are not shifting medium-term pricing plans."

"The issue is not on the demand side but the supply side of workers matched to jobs."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.32% on a daily basis at 90.60.