How the AI Economy Is Reshaping Blue-Collar Wages and the Fed's Dilemma

The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy · May 25, 2026 · 8m · transcript

In this episode, Lucas and Luna dig into a surprising paradox: as the AI economy booms, blue-collar wages are rising faster than white-collar ones—and the Fed is stuck at 3.64% while inflation creeps higher. Using fresh CPI and PCE data, they explore why this shift complicates the Fed's rate path, and why the bond market is sending mixed signals with the 10-year Treasury yield falling to 4.56% even as breakevens tick up. They also discuss how the war in Iran and a new UK-Gulf trade deal are reshaping energy markets, adding another layer of uncertainty for the Fed. With consumer sentiment…