Yared Praises 'Blowout' Jobs Report, Says Fed Has to Balance Mandate

• US added 130K jobs in January, double the 65K estimate, with unemployment at 4.3% (est. 4.4%).
• Yared attributes strong job growth to lower break-evens, demographic changes, and reduced immigration.
• He argues that significant productivity growth, including from AI, puts downward pressure on inflation, and the Fed should be forward-looking.
• Job growth was concentrated in healthcare and social assistance, which Yared defends as proportional to their share of the economy.
• Manufacturing added 5K jobs, and government jobs continued to fall, which Yared views as positive reallocation to the private sector.

Pierre Yared, acting chair of the White House Council of Economic Advisors, praises the January jobs report as a 'blowout,' with 130K jobs added, double estimates. He emphasizes that the Federal Reserve should focus on forward-looking productivity growth, which he sees as disinflationary, rather than past inflation figures. He highlights strong private sector job growth and a right-sizing of government employment.