Jason Furman on the Economy: Where Are We Now—and Where Might We Be Going?
What is the state of the economy today? To discuss, we are joined, again, by Harvard economist Jason Furman, who was deputy director of the National Economic Council during the Financial Crisis and then served as Chairman of the Council of Economic Advisers in President Obama’s second term. In this Conversation, Furman highlights a significant paradox of the current moment. On one hand, important indicators point to a reasonably strong economy: inflation has been slowing, wages have been rising, and unemployment remains low. On the other hand, Americans remain frustrated about prices and concerned about the future. To Furman, this disconnect speaks to the inability of the data to capture fully the psychological aspects of how inflation and other factors in the economy affect expectations. Furman also shares his concerns about a possible debt crisis if the US cannot get its fiscal house in order.