Fed hawks and doves have a lot more in common than they used to—an improving labor market. But what the hawks and doves still disagree on, however, is how much labor is improving and how central bank policy should respond. That was apparent in comments Thursday from two Fed presidents, both appearing on CNBC from the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming.
Comments from hawkish Kansas City Fed President Esther George and dovish San Francisco Fed President John Williams highlight the tension within the Fed over how good the job market really is and how much policy is needed to sustain and nurture it.
The Fed, for the first time Wednesday, highlighted in its July meeting minutes that its members were surprised by the improving job market. The economy has added more than 200,000 jobs in each of the last six months, and the unemployment rate, at 6.2 percent, is close to the Fed’s projected rate of 6 to 6.1 percent by year-end.