Fed’s Bullard Says US Job Growth Ahead of Schedule

U.S. jobs growth is “way ahead of schedule,” and most data suggest the economy is getting stronger, a top Fed official said on Thursday, downplaying recent data that showed a steeper-than-expected plunge in first-quarter GDP growth.

“It’s giving me heartburn, but I think the market’s right to shake this off,” St. Louis Fed President James Bullard, speaking in an interview on Fox Business Network, said of the GDP data that was released on Wednesday. “I think it’s an aberration. I would throw it out at this point; I think the economy actually looks pretty good.”

Jobs growth has been much stronger than expected since the Fed began its third round of quantitative easing in 2012, Bullard said, averaging more than 200,000 new jobs a month.

Inflation, which has been too low, will move higher this year, to at or above the Fed’s 2-percent target by 2015, he predicted. But as long as inflation keeps to around 2 percent on average over a period of several years, Bullard said he would not be too worried.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza