Alternative Visions - US Economic Updates: the Fed, Banking Crisis, and US Productivity & Jobs Reports
Alternative Visions - A podcast by Progressive Radio Network - Mondays
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The show begins with two questions: Will the Fed’s recent interest rate hike last week be its last? Has the Fed failed in its inflation objective, given the continuing rise of prices in the US services sector? Discussion then turns to the latest developments in the regional banking crisis with last week’s failure of First Republic and new banks new experiencing stock price collapse: PacWest Bancorp, Western Alliance and First Horizon. Rasmus explains why the banking crisis is not over and compares the current bank instability with the prior financial crisis in spring-summer 2008. Why the current bank instability may prove even more serious than 2008. The show concludes with a discussion of 2 key reports issued the past week: the US productivity report showing a decline of -2.7% for Jan-March 2023—the 5th consecutive quarter fall and the longest decline since data began in 1948; And last Friday’s most recent jobs report for April showing 253,000 jobs and the unemployment rate continuing to drop. Rasmus explains why the Fed’s major focus on the JOLT (10m unfilled jobs) statistic of 10m is grossly inaccurate with half of which ‘ghost’ jobs
