U.S. Productivity Drops as Labor Costs Jump

The video discusses the rise in first-time unemployment benefits and its statistical insignificance. It highlights a drop in nonfarm productivity and a rise in unit labor costs, indicating companies are paying more but getting less. The discussion shifts to wage inflation, with historical context from the 1990s, and the potential impact of interest rate changes. The focus then moves to CPI and core rate analysis, considering ongoing energy and food price pressures, and the influence of the Ukraine-Russia situation.

What factors are contributing to the expected continued wage inflation?

How might the core rate of inflation impact the Federal Reserve's interest rate decisions?