Fed’s Powell Sees No Risk of Labor Market Overheating

The Fed chief doesn’t see evidence the labor market is at risk of overheating, or generating a sharp upturn in price pressures

Federal Reserve Chairman Jerome Powell said Tuesday he doesn’t see evidence the labor market is at risk of overheating, or generating a sharp upturn in price pressures.

In an address to business economists in Boston, Mr. Powell pushed back against criticism that Fed officials’ current projections of sustained, very low unemployment are underestimating the prospect of inflation rising significantly above the central bank’s 2% target.

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