Fed’s Kaplan: We’re Rapidly Moving Toward Full Employment

The video discusses the need for additional fiscal stimulus due to two major economic headwinds: slow labor force growth and weak productivity growth. It emphasizes that monetary policy alone is insufficient and suggests structural reforms, regulatory reviews, and infrastructure spending to address these issues. The speaker believes there is additional labor slack, particularly among those with lower educational attainment, and highlights the importance of vocational training to improve workforce skills. The December employment report indicates progress toward full employment, with notable wage growth suggesting a tightening labor market.

What are the two big headwinds affecting labor force growth mentioned in the text?

How does the speaker believe monetary policy will address the current economic issues?

What is the speaker's view on the current state of employment and labor slack?

What role does vocational training play in addressing labor market challenges according to the speaker?

How does the December employment report relate to the narrative of moving toward full employment?