Summers Is Focused on the Employment Cost Index

The video discusses the importance of the Employment Cost Index release, which is a key indicator of wage inflation and labor costs. This index is crucial as it coincides with the Federal Reserve's deliberations. A soft index number could indicate disinflation, while a robust number might suggest the need for continued inflation control measures by the Fed.

What is the main focus of the discussion regarding the Employment Cost Index?

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Why is the Employment Cost Index considered the gold standard for wage inflation?

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How does the speaker relate wages to core inflation?

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What is the significance of the Employment Cost Index release timing in relation to the Fed's deliberations?

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What implications does a substantial softness in the Employment Cost Index have for the Fed?

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