Faster Wage Growth May Lead to Fed Policy Mistake, Says Vanguard's Davis

The transcript discusses the tight US labor market and its potential risks to the economy if the Federal Reserve makes policy mistakes. It explores the impact of rising oil prices and tariffs on inflation and economic growth, and how these factors might influence the Fed's actions. The labor market is highlighted as a key factor that could lead to economic surprises, while the effects of tariffs are seen as muted unless they severely disrupt financial markets.

How do tariffs impact inflation and economic growth according to the discussion?

What is the overall sentiment regarding the labor market's future as expressed in the text?