This podcast episode delves into the relevance of the Sahm Rule in the context of the COVID-19 economic landscape, challenging its reliability as a recession indicator due to unique supply shocks influencing labor market dynamics. Economist Sahm urges caution against the naive dismissal of the Sahm Rule's signals, emphasizing the potential risks of overlooking early recession signs and the need to consider the complexities of labor supply and demand. Furthermore, she highlights the politicization of economic indicators, advocating for responsible policy responses that utilize a comprehensive approach to navigate the current economic challenges.
