Fed’s Bullard Says U.S. Could See Rapid Decline in Unemployment

The U.S. labor market is likely to bounce back quickly as more temporarily furloughed workers return to jobs and the coronavirus pandemic comes under control, said Federal Reserve Bank of St. Louis President James Bullard.

“It’s very different labor market dynamics than what you are used to thinking about for recession,” Bullard said Friday as he took part in a virtual panel discussion with other central bankers. “There is a lot of prospect you can get fairly good labor market outcomes, continuing relatively rapid declines in unemployment and a good outlook therefore for the U.S. economy.”