• The Fed is approaching economic switchbacks, which could make the overall endeavor of a soft landing easier, but could also make the climb more difficult if ignored.
• The Fed wants to slow down the labor market, but is cognizant of the potential for an unwarranted easing in financial conditions.
• Complacency is pervasive in the labor market, with workers not being respected and incentives leading to less disruption.
• The Fed is trying to bring the labor market back into balance, but there is a need for central bankers to not always rely solely on their econometric models and instead throw in some human nature common sense.
• Albert Camus said it best when he said “real generosity toward the future lies in giving all to the present.”
Published January 5, 2023. Visit Kyla’s Newsletter to read kyla scanlon’s original post.
