Jobs Report Signals 'Immaculate Disinflation': Kroszner

The video discusses the Federal Reserve's approach to managing employment and inflation. It highlights the confusion around the Fed's desire for lower wage growth to control inflation, given that a significant portion of production costs are tied to wages. The concept of 'immaculate disinflation' is introduced, where wage growth and inflation decrease without increasing unemployment. The Fed's cautious stance on adjusting interest rates is explained, emphasizing their need to maintain credibility while testing new economic theories.

How does the Fed's approach to unemployment differ from the public's perception?

What is the Fed's primary concern regarding wage growth and inflation?

Discuss the implications of a potential recession in relation to wage and inflation rates.

Explain the concept of 'Immaculate Disinflation' as mentioned in the text.

What factors might lead the Fed to adjust its policies regarding interest rates?