What the U.S. Job Report Means for the Fed

The video discusses recent economic data, highlighting a solid jobs report with a low unemployment rate but a rise in part-time jobs and a decline in full-time jobs. The Fed is unlikely to change its policy based on this report due to stagnant wage inflation. The discussion also covers the Fed's dual mandate of full employment and inflation, noting the breakdown of the Phillips Curve correlation. Deflationary forces such as demographics and automation are impacting inflation, creating opportunities in long-term treasury bonds.

How does the Fed view the relationship between inflation and the labor market?

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What factors are contributing to the current inflation situation?

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