Cumberland's Eisenbeis on Fed's Jobless Rate Forecast

The transcript discusses the unrealistic jobless rate forecast for 2018, highlighting skepticism from economists like Ian Sheperdson. It explores the dynamics of supply and demand in the job market and the potential dislocations affecting unemployment rates. The role of the Federal Reserve in maintaining interest rates and its impact on jobless rates is examined. The discussion concludes with concerns about the sustainability of low unemployment rates and the risk of inflation.

What was Ian Sheperdson's view on the jobless rate forecast for 2018?

• He agreed with the forecast.

• He believed it was too optimistic.

• He thought it was too pessimistic.

• He had no opinion on the matter.

What factor is crucial in determining the actual jobless rate according to the second section?

• Technological advancements

• Supply and demand balance

• International trade agreements

• Government policies

What is a potential consequence of pushing the jobless rate too low, as discussed in the third section?

• Inflation

• Increased unemployment

• Economic recession

• Deflation

Why might the Federal Reserve be cautious about reducing the jobless rate too much?

• To stabilize international markets

• To increase job creation

• To prevent inflation

• To avoid deflation

What is the general consensus about a 4% unemployment rate according to the third section?

• It is sustainable.

• It is too high.

• It is not sustainable.

• It is ideal.