Fed’s Bowman: Labour market continues to be strong

Fed Reserve Governor Michelle Bowman said on Wednesday that US labour market is still robust, the recovery of the service sector, and more fully open schools and childcare centres will bring more women back to the workforce.

Bowman also mentioned that the US “continues to see strong employment gains and low unemployment rates, the kind of labour market that historically has pulled in more workers,”.

As for the market’s reaction, US futures are pricing in a higher probability of a 50 bps hike for Sep after the release of the FOMC minutes to around a 60% chance.

As a consequence, the US dollar is lower. The DXY index, that measure the dollar versus a basket of currencies fell 30 points to 106.44. The 10-year yield is under pressure, dropping 0.8% to 2.888% and well off the 2.919% highs for the day. The 2-year yield dropped by nearly 1.4%.

Bowman’s comments and remarks have been prepared for delivery before the Arkansas Women’s Commission in Russellville, Arkansas.

Key quotes

There are still plenty of jobs available even if we see the number of job openings reduced.

Labour market continues to be strong.

Future of labor supply is uncertain.

Some retirees may feel compelled to return to work due to inflation.

I see potential for greater job opportunities for women in the future.

High inflation and strong employment will likely create some pressure on labour and employment.