Fed's Schmid: Employment Report is Good News, Further Rate Cuts Could Lead to Sustained Inflation

Odaily News Federal Reserve's Schmid stated that the employment report is good news, and further rate cuts could lead to sustained inflation. He cautioned against interpreting last year's labor market as showing cyclical weakness. He suggested that artificial intelligence elements may be necessary to address the slowdown in labor force growth caused by an aging population, low birth rates, and low immigration rates. Structural changes have lowered the level of job creation, and the equilibrium point for employment growth may be around 40,000 to 50,000 new jobs per month. (Jin10)