Inflation Would Fall Faster Without Tariffs, Says Goldman's Hatzius

The video discusses the expectation of three rate cuts by the Federal Reserve in 2025, questioning the necessity given current economic indicators like low unemployment and growth. It explains the high funds rate and labor market rebalancing as reasons for potential rate cuts. The video also clarifies that these cuts are more about normalizing than easing. Additionally, it covers the impact of tariffs on China, the EU, and Mexico, noting their mixed effects on growth and inflation. The discussion highlights the complexity of economic policy and market reactions.

What is the expected unemployment rate mentioned in the text, and how does it compare to historical averages?

Discuss the distinction made between 'normalizing' and 'easing' in the context of Federal Reserve actions.