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Podcast: The Julia La Roche Show
Episode: #045 Caleb Franzen: The Fed Is Being Challenged By Ongoing Labor Market Dynamics
Description: Caleb Franzen (@CalebFranzen), senior market analyst at Cubic Analytics, joins Julia La Roche on episode 45 to discuss macro, markets, Bitcoin, and more.
A big theme in the conversation centers around the labor market and the Fed. Franzen discusses the Federal Reserve's prioritizing of three methods for reducing demand to bring down inflation, including creating an inverse wealth effect, increasing the cost of capital, and softening the labor market. The Fed suppressed demand in two of its three approaches, but the dynamics in the labor market are keeping demand elevated and offsetting these effects. That's why the Fed f...