Eagle Pigeon Wars Intensified? Fed Governor Bowman: The U.S. job market has not yet recovered

Financial Associated Press (Shanghai editor Xia Junxiong) news, local time on Tuesday, Federal Reserve Governor Bowman said that the US labor market will take a while to recover from the impact of the new crown epidemic, and the economy to fully return to the right track needs to do more work.

Bowman said that while the number of new jobs in the labor market has been encouraging recently, overall employment is still below pre-outbreak levels, and many people are still facing difficult choices for employment and job change, so some people need to re-enter the labor market.

San Francisco Fed President Daly made a similar point on Tuesday, noting that nearly 10 million people are still unemployed in the United States, with many more currently on the sidelines of the labor market.

Daly said that there are many factors affecting the job market today, some parents need to take care of their children, some people are worried about the new crown virus, and the federal government provides unemployment benefits, but these factors will not last forever, and most of these people will return to work as the economy recovers further.

Bowman and Daly's speeches suggest that there are serious divisions within the Fed. Earlier, Fed Governor Waller and St. Louis Fed President Bullard both said they believe the job market recovery is nearing completion and the Fed should start scaling back on bond purchases as soon as possible.

For now, the Fed is still working on at least $120 billion a month in debt purchases, including $80 billion in Treasury bonds and $40 billion in MBS.

The U.S. Department of Labor will release July non-farm payrolls data on Friday, and the market expects the U.S. to add 788,000 new jobs in July.