Fed's Waller: Labor supply appears to be normalizing to pre-pandemic levels

Eren Sengezer FXStreet

Federal Reserve (Fed) Governor Christopher Waller said on Tuesday that the US economy was booming in the third quarter and noted that the Fed is watching that very closely, per Reuters.

Key quotes

"Labor market is cooling and getting close to average from before the pandemic."

"Labor supply also appears to be normalizing to pre-pandemic levels."

"In central banking terms, movement up in 10 year has been an earthquake."

"Policymakers are mulling what drove long-term yields higher."

"What people have in mind now is for prices to return to earlier levels, and that is not going to happen."

Market reaction

These comments don't seem to be having a noticeable impact on the US Dollar's (USD) performance against its major rivals. As of writing, the US Dollar Index was up 0.35% on the day at 105.62.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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