Fed Sees U.S. Economic Growth Downshifting to Moderate Pace

The transcript discusses the Federal Reserve's view on the current economic downshift, largely attributed to the Delta variant and labor shortages. It highlights the impact on employment, with increased turnover and early retirements, and the resulting wage growth, especially among lower-wage workers. The Fed notes a deceleration in economic activity, particularly in dining, travel, and tourism, due to labor and supply chain issues. John Williams of the New York Fed emphasizes the need for more data to assess job growth, while inflation is currently satisfactory. The transcript concludes with anticipation for economic changes post-September, with the end of enhanced unemployment benefits and the return to school.

What expectations do the markets have regarding the Fed's characterization of the economy?

What does John Williams, the vice president of the Open Market Committee, need to see before making decisions about labor?