BREAKING NEWS: John Kennedy Rapid-Fire Questions Fed Chair Jerome Powell About Economy, 'Bidenomics'
Summary
TLDRSenator Kennedy discusses the slowing economy, rising unemployment, and the concentration of job creation in government, health care, and social assistance. He highlights the impact of inflation on consumer expectations and the importance of addressing economic challenges, while also questioning the role of corporate greed in causing inflation.
Takeaways
- 📉 The economy is slowing down but still growing at a solid pace.
- 🔍 Unemployment rate is rising, yet the labor market remains strong.
- 📈 Job creation is becoming less broad, with a concentration in government, health care, and social assistance.
- 🏭 Manufacturing is not creating many new jobs, indicating a flat trend in this sector.
- 💻 Information Technology has been shedding jobs over the past two years.
- 🏨 Leisure and hospitality jobs have slowed significantly, suggesting a catch-up after a period of desperate worker shortage.
- 💰 A significant portion of job creation is related to government spending, which may be indirectly linked to deficits.
- 🌐 Consumer expectations play a significant role in the economy, especially in a consumer-driven economy like America.
- 💔 Most Americans do not feel good about the economy, primarily due to inflation.
- 💬 The discussion highlights the complexity of defining economics and how people perceive it in terms of their daily expenses.
- 💡 The Federal Reserve views inflation as an imbalance between supply and demand and aims to adjust demand to align with supply.
Q & A
What is the current state of the economy according to the transcript?
-The economy is slowing down but still growing at a solid pace. The unemployment rate is rising, but the labor market remains strong.
Is the labor market slowing down?
-Yes, the labor market is slowing down, but unemployment is still low by historical standards.
What does the concentration of new jobs in government, health care, and social assistance indicate?
-This concentration suggests that job creation is becoming less broad in the economy and is narrowing.
Is the government the primary creator of jobs in the mentioned areas?
-While the government is involved, it is also in-person services and some government manufacturing that is contributing to job creation in these areas.
What is the role of Information Technology in job creation over the past two years?
-Information Technology has shed jobs over the past two years, indicating a decline in this sector's contribution to job creation.
How has the leisure and hospitality sector performed in terms of job creation?
-The leisure and hospitality sector has slowed almost to a trickle, suggesting that hiring has caught up with demand after a period of desperate worker shortage.
What is the relationship between the jobs being created and the economy's spending deficits?
-It is suggested that about 3/4 of the jobs being created can be directly or indirectly related to spending deficits.
What is the role of consumer expectations in the economy?
-Consumer expectations play a significant role in the economy, especially in a consumer-driven economy like America's. If consumers expect inflation, they may contribute to its occurrence.
How do most Americans feel about the economy?
-Most Americans do not feel good about the economy, primarily due to concerns about inflation.
What is the Federal Reserve's view on the cause of inflation?
-The Federal Reserve sees inflation as an imbalance between supply and demand, and they use their tools to work on the demand side to bring it back in line with supply.
Is the Federal Reserve signaling any future actions regarding interest rates?
-No, the Federal Reserve is not sending any signals about the timing of any future actions on interest rates.
Outlines
📉 Economic Slowdown and Job Creation Concerns
Senator Kennedy of Louisiana discusses the state of the economy, noting that while it is still growing, the pace is slowing. He highlights a rising unemployment rate, though it remains low by historical standards. The conversation focuses on the concentration of new jobs in government, health care, and social assistance, suggesting a narrowing of job creation. The senator also mentions that manufacturing and information technology sectors are not creating many new jobs, and leisure and hospitality jobs have slowed significantly. He emphasizes the importance of consumer expectations in the economy, noting that most Americans do not feel good about the economy, primarily due to inflation. The senator concludes by questioning whether inflation is caused by corporate greed.
💼 Inflation and the Role of Supply and Demand
The speaker addresses the issue of inflation, explaining that it is seen as an imbalance between supply and demand. They mention that the Federal Reserve uses its tools to work on the demand side to bring it back in line with supply. The speaker is cautious about signaling any future actions regarding interest rates, indicating a need for careful consideration of economic conditions before making policy decisions.
Mindmap
Keywords
💡Economy
💡Unemployment Rate
💡Labor Market
💡Job Creation
💡Government Spending
💡Deficits
💡Inflation
💡Consumer Expectations
💡Information Technology
💡Leisure and Hospitality
💡Interest Rates
Highlights
Senator Kennedy of Louisiana recognizes the economy is slowing but still growing at a solid pace.
Unemployment rate is rising, but the labor market remains strong.
Labor market is slowing, and unemployment is increasing, though still low by historical standards.
Recent job numbers show 3/4 of net new jobs created in June were in government, health care, and social assistance.
Job creation is becoming less broad and is narrowing in the economy.
Government is a significant creator of jobs, particularly in in-person services.
Manufacturing is not creating a lot of new jobs, and Information Technology has shed jobs over the past two years.
Leisure and hospitality jobs have slowed, indicating a catch-up after a period of desperate worker shortage.
Approximately 3/4 of the jobs being created can be related directly or indirectly to spending deficits.
Healthcare spending is not necessarily directly related to deficits.
Consumer expectations play a significant role in the economy, especially in a consumer-driven economy like America.
Most Americans do not feel good about the economy, primarily due to inflation.
Inflation is seen as an imbalance between supply and demand by the FED.
The FED uses its tools to work on the demand side to bring it back in line with supply.
There is a caution against overreacting to the current economic situation.
No signals are given about the timing of future actions regarding interest rates.
Transcripts
Senator Kennedy of Louisiana is
recognized thank you Mr
chairman Mr chairman our uh our economy
is slowing is it
not yes although still growing at a
solid
Pace our unemployment
rate is rising is it not yes it is
although the labor market is still
strong uh
um our labor market is slowing is it not
yes but I I'd say unemployment is still
you know it's still low by historical
standards but yes it is we seemen
cooling
yes and I I was looking at the recent
jobs
numbers I I know you've glanced at them
too
[Music]
um about
3/4 of the net new job jobs that were
created in June were in
government health care and social
assistance what does that tell you so
that's a that's a concentration you
you'd rather see
broader uh job creation than that those
three areas have in some reports they've
they've been as it was this time they've
been the predominant creators of jobs
that tells you that job creation is
becoming less Broad in the economy and
Nar it's narrowing it tells you that
government government's creating those
jobs doesn't it well it's government
it's it's it's it's also in-person
Services it's also uh it's some some of
it's government manufacturing's been
flat yes manufacturing is not creating a
lot of lot of new jobs these days
Information Technology shed jobs over
the past two years hadn't it I don't
know uh Leisure and
hospitality jobs have slowed almost to
trickle so that's a place where where um
there were there was a desperate worker
shortage and they've done quite a bit of
hiring but they're catching up now I
mean three three4 of the jobs that are
being
created in our economy can be related
directly or or indirectly to to to our
our our spending deficits can't
they in this report in this single
report I I don't know that Healthcare is
really uh government spending that's
that's something people where do you
think these hospitals get their money
they may they may get it but I mean
people are not the spending on the
spending on healthc care is not
necessarily directly related to deficits
is my point I I I would disagree with
you
um I mean here's my point we we talk a
lot about
uh uh expectations in terms of inflation
how if we expect there to be
inflation we we'll get
inflation it seems to to me that uh
consumer expectations play a role a
bigger role in the
economy than than than we see to
them um most of our economy is in
America is consumer-driven is it not yes
unlike say China which is manufacturing
driven very much so um and and and I
listen to you site the statistics about
the economy but most Americans um Mo
most Americans don't feel good about the
economy do they no and we don't we don't
tell people how to feel about the
economy I mean isn't it a fact that most
people if you if you ask them to Define
biomics they would say that's easy we
get to pay more to live
worse I I wouldn't touch a uh you don't
want to answer a sentence with that word
in it yeah yeah I mean we can pretty
this up all we I I guess my point is and
I know you're going to do this anyway
but I'd be really careful with this
economy I mean people just don't feel
better off
today and and one can Marshal a
persuasive argument that well you should
compared to Europe or compared to
China um um compared to
Canada but they you know feelings are
feelings people don't feel good about
this economy and it's primarily because
of of
inflation let me use my final 30 seconds
to ask
you I listen to my good friend the
chairman give his opening
statement do you think inflation was
caused by corporate
greed I hate to comment on something the
chairman was speaking about I'll go
ahead well so I will just say we see at
the FED we see inflation as as uh
when there's an imbalance between supply
and demand and we use our tools to work
on the demand side of that and bring it
back into line with Supply I got two
seconds soone are you going to overow
interest
rights I'm I'm today not going to be
sending uh any signals about the timing
of any future actions thank you Mr
chairman
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