Marketplace All-in-One The 2025 consumer sentiment rollercoaster
Dec 19, 2025
Amara Mokwe, a Bloomberg journalist, and Heather Long, chief economist at Navy Federal Credit Union, analyze current labor market conditions and the implications for the Federal Reserve. They discuss consumer sentiment's sharp fluctuations throughout 2025 and its impact on spending, highlighting K-shaped recovery trends. Scott Simpkins shares innovative ways to incorporate AI into economics education, including student-created songs about monetary policy. Meanwhile, Henry App explores Kansas City's housing market dynamics ahead of the 2026 World Cup.
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Foggy Economic Signals Complicate Forecasts
- The data this week made the outlook feel foggier, not clearer, mixing small improvements in inflation with weakening labor signs.
- Amara Mokwe and Heather Long highlight conflicting signals that complicate Fed decisions.
Fed Is Divided On Easing Path
- Fed officials now split into camps weighing inflation risks against labor-market fragility.
- That division makes further cuts uncertain and raises the possibility of a January pause.
AI And Immigration Are Reshaping Labor Supply
- Two structural forces — AI and a big decline in immigration — are altering labor supply and hiring patterns.
- Heather Long warns these factors may explain weak hiring even without widespread layoffs.