Fed's Santomero-Hard to define full employment Thursday January 15, 8:54 pm ET
CHERRY HILL, N.J., Jan 15 (Reuters) - Philadelphia Federal Reserve President Anthony Santomero said on Thursday it was hard to define the level of full employment, one of the key guideposts for when the Fed needs to start thinking about raising rates.
"I don't think that number is easy to define. You have to look at the dynamics of the labor market," Santomero said in response to questions from reporters after a speech. "As we get closer to employing those labor resources, we have to look for signs of blockages and problems in the labor market."
In his earlier speech, Santomero said the Fed will have to consider a policy adjustment "as we see signs that the economy is on a trajectory to achieve full employment or potential output, but before inflation actually accelerates."
The Philadelphia Fed president also said the downward pressure on prices has abated "significantly." Last year the central bank said it was worried about a pronounced slowing or outright decline of prices.