Fed’s Evans blames weak jobs report on ‘growing pains’ but sees strong job growth for rest of 2021


Chicago Fed President Charles Evans said he expects the labor market to continue to expand at a healthy pace for the rest of the year, despite the weaker-than-expected job gains in April.

In a Monday morning interview with CNBC, Evans blamed the poor reading on sectors “experiencing growing pains” and also trouble with job-matching and lack of child care.

“I’m looking for continued strong employment growth over the rest of the year,” Evans told the business news network.

“Hopefully, [the April report] is just a one-month-kind-of-thing and we’re going to get to better employment. I certainly think so because we’ve got a lot of support,” he said referring to fiscal stimulus and accommodative monetary policies in place.

The Fed has been buying $120 billion a month of assets, along with keeping interest rates close to 0%, to support the economy.

The Fed has said it wants to see “substantial further progress” before scaling back asset purchases.

Asked about his outlook for policy, Evans said the Fed wants to see “outcome-based monetary policy.”

“I think we’re going to have to see more strong employment numbers and we’ll have to see inflation [rise], Evans said.

“It is going to take quite some time for us to actually see it in the data. I can’t give you a time frame,” he said.

“When we’re close to our employment mandate and inflation is picking up, we’ll be talking about that,” he added.

Evans is expected to speak again later Monday at a conference at 2 p.m. ET hosted by the Society for Advancing Business Editing and Writing.

Meanwhile, stocks traded mixed early Monday, with the Dow Jones Industrial Average
trading in record territory and the S&P 500 index
and the Nasdaq Composite Index
trading lower.

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