Fed's Mester: Unemployment benefits are not main issue with labor supply

Cleveland Fed President Loretta Mester told Yahoo Finance on Tuesday that childcare and vaccinations are the main issues with the labor supply rather than the unemployment benefits, as reported by Reuters.

Additional takeaways

"April jobs report was disappointing but outlook is still bright."

"Reopening varies across sectors, schools aren't open and health concerns affecting labor supply."

"Want to see more and broader progress."

"No doubt we are in a recovery but will see some ups and downs."

"Want to see more strength in labor market and expecting that this year."

"Until we get a broader vaccination rate, we won't be back to normal."

"Inflation readings will be elevated for next couple of months because of math."

"Inflation will end the year above 2% but next year, as supply constraints ease, will come back down."

"Equity prices are high."

"Financial stability risks overall are moderate."

"Volatility in markets is only a problem when it is coupled with high degrees of leverage."

Market reaction

The greenback continues to have a difficult time finding demand after these remarks. As of writing, the US Dollar Index was down 0.23% on a daily basis at 90.07.