Fed's Barkin: Demand for labour continues to outpace supply

Richmond Fed President Thomas Barkin said on Monday that the demand does not yet seem to be dented by the coronavirus Delta variant, as reported by Reuters.

"The demand for labour continues to outpace the supply of people willing to work," Barkin further noted. "The current pressure on wages is intense at lower levels of the pay scale."

Regarding the inflation outlook, Barkin argued inflation expectations stay near their target, supporting the view that the recent increase in price pressures is temporary.  

Market reaction

These comments don't seem to be having a significant impact on the USD's market valuation. As of writing, the US Dollar Index was up 0.18% on the day at 92.95.