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Jeremy Siegel says the Fed "overshot their target on the labor market"

August 05, 2024 / 00:58

This episode discusses the current state of the job market, the Federal Reserve's actions, and inflation rates. Key topics include unemployment rates, inflation targets, and the Federal Reserve's decision-making process.

The conversation highlights concerns about the Federal Reserve moving too slowly in response to labor market changes. The unemployment rate has risen to 4.3%, surpassing the expected 4.2% target. The discussion emphasizes the need for action from the Federal Reserve.

Inflation is reported at 2.5%, with the Federal Reserve's target still not fully met. The episode questions why the Federal Reserve has not adjusted the federal funds rate despite these economic indicators.

TLDR

The episode critiques the Federal Reserve's slow response to rising unemployment and inflation rates.

Episode

0:58

00:00:00

it is uh a big deterioration in the jobs picture and a fear that the FED is moving way too slow they should have cut

00:00:09

at the last meeting they have overshot their target on the labor market and other words they said the normal label

00:00:18

Market should be 4.2% unemployment we crossed to 4.3 on Friday we've gotten down to 2 and

00:00:25

a half% inflation we're still 90% towards our inflation Target but we've

00:00:31

changed nothing on federal funds the FED has printed in their last meeting that the normal Fed funds rate should be

00:00:41

2.8% so given that they've overshot on one of their two Targets almost there on

00:00:47

the other why have they not moved on the FED funds rate

Episode Highlights

FED's Oversight on Targets
The FED has overshot its labor market target but hasn't adjusted the funds rate.
“Why have they not moved on the FED funds rate?”
@ 00m 51s
August 05, 2024

Episode Quotes

Why have they not moved on the FED funds rate?
Jeremy Siegel says the Fed "overshot their target on the labor market"

Key Moments

FED's Slow Response00:03
Inflation Concerns00:25
Target Overshoot00:45