Strong labor market is crucial for recovering the economy.

In order to recover the economy damaged by the pandemic, firm labor market needs to be maintained. Unless, unwanted hyperinflation occurs, the Fed would not tighten their monetary policy until the unemployment rate falls pre-pandemic level. However, worries from public indicate that there are some signs of inflation, explained below.

1) Compared to the recession caused by financial crisis in 2008, the recovery will be much faster than then. 

2) Households and companies already have enough cash to spend or expand their business but they are saving it into the asset for later.

However, the Fed chairman insist that it is still way far from strong labor market. He believes providing much support to the economy is less risky than doing too little.

Global Monitor

https://www.globalmonitor.co.kr/view.php?ud=202102110529085201a6a872ef5_41