Goldman's Hatzius on CNBC: Labor Market Gradually Healing

Earlier, Goldman Sachs' Chief US Economist Jan Hatzius appeared on CNBC to give his outlook for the labor market. Hatzius stated that there was a gradual healing process underway in the labor market, but that the process was not driven by construction. Hatzius stated that there was quite a lot of room to grow in the labor market if the improvement comes in geographical areas where there is still a "ton of slack." Yet, he thinks there will only be moderate GDP growth because significant headwinds persist in the economy. Hatzius believes fiscal restraint and higher oil prices could harm the economy. Hatzius stated that oil prices could shave 1/4 to 1/2 point off GDP. He said that lower natural gas prices help slightly, but oil is much more significant than natural gas. Hatzius believes that Federal Reserve will be very easy and keep rates low for a long time. It will depend on the data, but Hatzius believes that the Fed wants to support the conomy. Hatzius is predicting a jobs number this Friday of 200k, and sees a slight decline in the unemployment to 8.2%.