Odd Lots

Austan Goolsbee on How This Cycle Turned Out To Be So Different

Oct 11, 2024

Chicago Fed President Austan Goolsbee joins to share his expertise on the evolving US economy. He highlights the unexpected success of reducing inflation without significant unemployment rises. Goolsbee discusses the shifting focus of the Federal Reserve from merely battling inflation to navigating labor market risks. He delves into the implications of strong job reports and explains why risk management is crucial in this economic cycle. His insights shed light on the delicate balance the Fed must maintain as it addresses both inflation and employment.

46:19

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Austan Goolsbee

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Quick takeaways

Austan Goolsbee discusses the Federal Reserve's strategic shift from strictly combating inflation to also addressing labor market risks and economic stability.

The podcast highlights the complexities of housing market dynamics impacted by rising interest rates, influencing both supply and demand amid shifting economic conditions.

Deep dives

Analyzing the Current Economic Landscape

The podcast discusses the current macroeconomic environment, highlighting a pivotal moment influenced by recent labor market data. A positive jobs report has sparked debate over its implications, leading to uncertainty regarding potential Federal Reserve policy changes. The interview reveals the dual focus shift of the Fed from combating inflation to assessing balanced risks in the labor market and overall economy. This context underscores the challenges faced by the Fed in navigating a complex economic landscape marked by incomplete information.

Intro

2min

Navigating Economic Uncertainty

9min

Navigating Fed Decision-Making

8min

Monetary Policy and Its Complexities

10min

Navigating Housing Market Challenges Amid Rising Interest Rates

3min

Navigating Inflation: Insights and Implications

16min

Expanding Insights: From Weekly to Daily Newsletters

3min

In 2022 and 2023, the Federal Reserve basically had one focus: defeating inflation. That's now changed. Keeping inflation at bay is still important, but the Fed is now attuned to labor market risks as well. On this episode of the podcast, we speak with Chicago Fed President Austan Goolsbee about how the US economy achieved something that almost nobody thought was possible: a marked decline in inflation without a major increase in the unemployment rate or a slowdown in economic activity. We discuss what actually happened to the economy over the last four years. What was the role of monetary policy in bringing down inflation? How much of the inflation turned out to be transitory all along? And what are the risks today, with the September jobs report having come in much stronger than expected? He explains why the Fed has shifted its priority and how he's thinking of risk management at this point in the economic cycle.

Read More:
Three Fed Officials Shrug Off CPI Report, Bostic Open to Pause

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Odd Lots

Austan Goolsbee on How This Cycle Turned Out To Be So Different

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Analyzing the Current Economic Landscape

The Fed's Response to Economic Indicators

The Complexity of Housing Economics

Balancing Demand and Supply Shocks

Remember Everything You Learn from Podcasts