The dovish assessment in comments to the Wall Street Journal points to softer employment conditions and suggests the Federal Reserve could still ease policy if data weaken.
Federal Reserve official Barkin said the U.S. labor market "does not feel tight" in comments to the Wall Street Journal, offering a notably dovish read on employment. The remarks indicate the door to a potential interest-rate cut remains open, an important signal for markets because policymakers often gauge labor tightness when assessing inflation pressure and the need for restrictive monetary policy.