

Take it with a grain of salt
Aug 4, 2025
Wendy Edelberg, a Senior Fellow at the Brookings Institution and an authority on economic policy, joins the discussion on the reliability of labor statistics amidst political pressures. They delve into how the perception of workforce dynamics is shifting due to revised job numbers and immigration policies. The conversation takes a comparative look at U.S. and Chinese data integrity, highlighting the need for skepticism towards official statistics. They also explore the intricacies of municipal bonds and the implications of rising interest rates on local governments.
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Immigration's Impact on Jobs Data
- President Trump's immigration policies have reduced the labor force significantly.
- This decline caused labor market numbers to lag and appear artificially strong initially.
Shrinking U.S. Labor Force Reality
- The U.S. labor force is shrinking due to negative net migration for the first time in decades.
- This trend will require accepting smaller job gains as the new normal, affecting some sectors more than others.
Fed Board's Long-Term Design
- The Federal Reserve Board of Governors serves 14-year terms to ensure insulation from political pressure.
- President Trump can shape the Fed's direction through new nominations after a governor's resignation.