Derby’s Take: Regional Feds Spar Over Labor Market Tightness

Some Federal Reserve officials are struggling to find common ground on one of the fundamental questions surrounding the economic recovery from the coronavirus pandemic: Is the job market tight or loose?

Over recent weeks, bank leaders and economists at the regional level have staked out the view that the job market may be tighter than it looks based on traditional metrics such as the unemployment rate. That camp includes the leaders of the Dallas and St. Louis Fed banks. By contrast, a research note from the San Francisco…

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