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Fed's Bullard says enough resources with expected labour rebound
[LOS ANGELES] Federal Reserve Bank of St Louis President James Bullard, a contrarian on the need for immediate fiscal stimulus, reiterated his stance from late last month that there are sufficient resources to get the US economy through the end of 2020 as the job market rebounds.
Unlike the job cuts during the 2008 global financial crisis, most of the layoffs during the pandemic have been temporary, he said in an interview with Fox Business on Friday. At one point, as much as 85 per cent of the job losses were temporary, he added.
"There's been a rapid improvement in the labour market," he told Fox Business.
"What we know about those kinds of workers is they tend to get recalled. So let's cross our fingers that more will continue to be recalled. If that happens, unemployment levels will come down rapidly in the last few months of the year."
President Donald Trump said earlier on Friday that he wants an even bigger stimulus than what Democrats have offered so far. Treasury Secretary Steven Mnuchin headed into talks with House Speaker Nancy Pelosi on Friday carrying a White House offer of US$1.8 trillion for economic stimulus, according to people familiar with the matter. Mrs Pelosi has proposed a US$2.2 trillion plan, down from the US$3.4 trillion package the House passed in May.
The economy should continue to recover from the coronavirus-induced recession even if Congress puts off consideration of additional fiscal stimulus to 2021, Mr Bullard said last month.