How the Fed Reads the Rising Participation Rate

The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy · Jul 9, 2026 · 6m · transcript

In this episode, Lucas and Luna explore a surprising shift in the labor market: after months of falling participation, the rate ticked up slightly in June. They break down what the Fed sees in the details—prime-age workers returning, but older workers still on the sidelines—and why this seemingly good news complicates the rate path. With the fed funds rate at 3.63% and core PCE still sticky at 130.1, the hosts explain why a participation increase might actually delay rate cuts if it keeps wage pressure alive. They also tie in China's rising producer prices and what that means for global…