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Federal Reserve's Powell says labour slack remains despite strong job growth
[NEW YORK] Federal Reserve Governor Jerome Powell said on Monday the US labour market remains slack despite strong job growth and falling unemployment.
Mr Powell said he felt the current 5.7 per cent rate of unemployment did not accurately capture the numbers of discouraged workers and others who may be willing to rejoin the labour force if market conditions improve. "There is slack out there ... There is very little in the way of wage gains," Mr Powell said in remarks at Catholic University.
He said the Fed is debating whether the natural rate of unemployment has fallen, and that by some estimates it may have dropped below five per cent.
If that is the case, it means the Fed has further to push on employment before inflation begins to accelerate.