Bold Names SPECIAL WSJ’s Take On the Week: How This Fed Hawk Views the Economy, Inflation, AI and Jobs
Dec 23, 2025
Nick Timiraos, Chief Economics Correspondent at The Wall Street Journal, joins Beth Hammack, President of the Federal Reserve Bank of Cleveland. They dive into the state of the U.S. economy, discussing inflation, labor market trends, and the importance of Fed independence. Hammack shares insights on the neutral interest rate, the impact of AI on employment, and the balance between policy and market conditions. They emphasize careful analysis of multiple economic indicators before making monetary policy decisions.
AI Snips
Chapters
Transcript
Episode notes
Don’t Overweight One Data Point
- Beth Hammack treats individual economic reports as noisy inputs and focuses on a broader constellation of data and business conversations.
- She emphasizes district outreach and forecasts over single monthly CPI or payroll reports.
Labor Market Is Cooling, But Uneven
- The labor market is gradually cooling with job gains down to tens of thousands monthly rather than the earlier hot pace.
- Hammack highlights pockets of labor tightness in manufacturing and skilled trades despite overall cooling.
Growth With Sticky Inflation Creates Tough Tradeoffs
- Hammack sees healthy GDP growth forecasts alongside sticky inflation near 3%, making policy choices tricky.
- She prioritizes completing the job of returning inflation to target while watching labor signals.