Squawk on the Street SOTS 2nd Hour: The Jobs Breakdown w/Chicago Fed President Goolsbee, Plus: Constellation Energy CEO 1/10/25
Jan 10, 2025
Austan Goolsbee, the President of the Chicago Fed, shares insights on sticky inflation and the implications for rate cuts, emphasizing the nuances of the current job market and consumer confidence. Joe Dominguez, CEO of Constellation Energy, discusses the major $19 billion acquisition of Calpine, highlighting its significance in a surging energy sector. They touch on the intertwining impact of rising treasury yields, challenges in productivity growth, and the ongoing wildfires affecting California.
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Strong Jobs Report, Negative Impact on Tech Stocks
- The strong December jobs report, with 256,000 jobs added, indicates a healthy economy.
- However, rising treasury yields, partly due to the strong jobs report, negatively impact tech stocks.
Goolsbee's View on Jobs and Inflation
- Chicago Fed President Austan Goolsbee views the job market as stable and not a source of inflation.
- He believes current interest rates should eventually decrease if inflation remains stable around 2%.
Goolsbee's Inflation Perspective
- Goolsbee defends his view on recent inflation progress by focusing on 6-month, not annual, PCE data.
- He attributes the perceived inflation stickiness to high inflation numbers from early 2024 still influencing the 12-month average.