Fed needs to show jobs are a ‘priority’ with a rate cut

The June Job Openings and Labor Turnover Survey (JOLTS) data released Tuesday delivered a higher-than-expected reading of 8.18 million job openings. Seth Harris, former acting labor secretary and former deputy director of the National Economic Council under President Biden, shares his insights on the job market with Catalysts.

Harris describes recent employment data as “boring,” but added, “that’s what you want in the labor market.” He compares the ideal labor market to a smooth airline trip, saying it should have little to no turbulence and “land very gently.” However, he expresses concern about the number of people quitting their jobs voluntarily and the initial weekly jobless claims, which he says are “higher than I would like.”

Regarding the Federal Reserve’s stance on interest rates, Harris states, “I would like to see the Federal Reserve take some action.” He elaborates: “They need to send a signal that they’re not just concerned with inflation, but they’re also concerned about employment and unemployment levels.” Harris stresses that the Fed should demonstrate that “jobs is a priority.”

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This post was written by Angel Smith