Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Lowest Jobless Claims in Years Aren't Worrying the Fed
Initial jobless claims just dropped to 187,000, the lowest in years. Normally, that signals an overheating economy. But the Fed isn't flinching. In this episode, we unpack the paradox: why a tightening labor market coexists with cooling inflation. We examine the latest data—including a dip in core CPI and a steady Fed funds rate at 3.63%—and discuss how Fed watchers are parsing Kevin Warsh's recent remarks. Warsh has zeroed in on three key phrases that hint at the central bank's patience: 'further progress' on inflation, a 'sufficiently restrictive' policy…
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