We're Getting Mixed Messages on Economy: Goolsbee

The video discusses the current economic situation, highlighting consumer spending trends, inflation, and GDP changes. It examines the Federal Reserve's challenges in balancing interest rate hikes to control inflation without triggering a recession. The discussion also covers the risks of stagflation and the unique nature of the current economic downturn, which is led by the service sector. The Fed's task is complicated by the lack of historical precedent for the current economic conditions.

What potential economic issue could arise from the Fed's actions to control inflation?

What challenges does the Fed face in applying monetary policy in the current economic climate?