Bloomberg Talks Claudia Sahm Talks 2025 Economy, Stagflation Risk
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Dec 30, 2024 
Claudia Sahm, Chief Economist at New Century Advisors and a former Federal Reserve economist, brings her keen insights on the 2025 economic landscape. She highlights trends in inflation, the resilience of the labor market, and the critical risks to economic growth. Discussions also touch on potential stagflation and the importance of consumer spending and fiscal policies. Sahm emphasizes addressing blind spots in economic predictions and hints at how health advancements might influence future productivity.
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2025 Economic Outlook
- The economy is currently performing well, with low inflation and a strong labor market.
- However, there are concerns about potential blind spots and what could go wrong in the future.
Labor Market Concerns
- The Federal Reserve's complacency about the labor market's strength is a concern.
- The labor market's current state might not be sustainable, posing potential risks.
Inflation vs. Labor Market
- A weakening labor market is a bigger risk than persistent inflation.
- Inflation is currently manageable, with encouraging signs of disinflation.