Pimco's Fels Sees Hidden Slack in U.S. Labor Market

The video discusses the current state of the US labor market, highlighting issues such as stagnant wage growth and hidden slack despite low unemployment rates. It examines the Federal Reserve's belief in the Phillips curve and its impact on monetary policy, particularly in relation to inflation and interest rates. The discussion also covers financial conditions, potential policy mistakes, and the importance of inflation expectations. Finally, it explores wage pressures, labor force participation, and the factors influencing normal wage growth.

What are the implications of stagnant wage growth in the context of the US labor market?

How does the concept of 'shadow slack' relate to the current unemployment rate?

What factors are contributing to the Fed's belief in the Phillips curve?

Discuss the significance of the U-6 broad unemployment rate in understanding labor market conditions.

What are the potential risks of the Fed focusing on financial stability over economic data?

How does productivity growth influence wage growth in the current economic climate?

What is considered a normal pace of wage growth in relation to inflation and productivity?