Fed’s Kashkari says wages show labor market still has slack

Minneapolis Fed President Neel Kashkari speaks during an interview at Reuters in New York
FILE PHOTO: Minneapolis Fed President Neel Kashkari speaks during an interview at Reuters in New York, U.S. on February 17, 2016. REUTERS/Brendan McDermid

March 5, 2019

(Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari repeated on Tuesday his view that the U.S. job market still has room for improvement, citing slow wage growth and the millions of Americans that have reentered the job market in recent years.

“I think there is still slack in the labor market, and until we see wages growth really pick up I’m going to believe that there are still more Americans out there,” Kashkari said in testimony to the Minnesota Senate Finance Committee. “I’m very focused on wages as the best indicator overall of how tight is the labor force.”

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

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