A top Fed official wants to make sure the job market is strong enough to withstand the next recession

Justin Sullivan/Getty

• Richmond Fed President Thomas Barkin is worried policymakers may lack the tools to deal with the next recession.
• With that in mind, he says, looking for ways to strengthen US labor-force participation could create a crucial buffer before the next downturn.

---

The Federal Reserve may have limited tools to deal with the next recession, making it imperative that policymakers find ways to further strengthen an already much-improved labor market before the next economic downturn, Richmond Fed President Thomas Barkin said in a speech Wednesday.

"I'm concerned about monetary and fiscal policymakers' capabilities to provide an effective backstop in the next recession," said Barkin, who joined the Fed in January. "But stronger underlying growth would address this concern. Stronger growth would allow the FOMC to raise rates higher without constraining the economy, giving us more ammunition when we need it."

See the rest of the story at Business Insider

NOW WATCH: INSIDE WEST POINT: What it’s really like for new Army cadets on their first day

See Also:

• Here are your favorite TV shows that are coming back for another season
• Your opinion matters — Join BI Insiders program
• Psychologists say parents should do these 21 things to raise a more confident child

SEE ALSO: There's a major hurdle to employment that many Americans don't even think about — and it's holding the economy back

from Business Insider https://ift.tt/2nqtb1w