Fed's Alberto Musalem Talks US Economy, Labor

The podcast features an interview with Alberto Musalem, President of the St. Louis Fed, who discusses the current economic landscape, including resilient consumption, a softening labor market, and inflation. He addresses concerns about lower-income individuals taking on more debt and the potential risks associated with it. Musalem also shares insights from companies in his district, noting that uncertainty has plateaued and that they are experiencing higher costs, some related to tariffs. He touches on the fragility of the labor market, the role of monetary policy, and the balance of risks between cutting rates too fast versus not cutting soon enough. Finally, he expresses concerns about people having "more month than money" and the increasing use of food pantries and aid institutions, emphasizing the importance of bringing inflation back towards the 2% target.