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?

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

How does the speaker relate wages to core inflation?

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

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