This podcast episode features an interview with Austan Goolsbee, President of the Federal Reserve Bank of Chicago, discussing inflation and the Federal Reserve's response. The conversation covers the surprising lack of recession despite high inflation, the role of supply chain issues and labor force participation, and the importance of the Fed's credibility in managing inflation expectations. Goolsbee emphasizes the need to focus on "real economy" channels rather than solely on wealth effects and highlights the complexities of interpreting inflation data, particularly housing inflation. He advocates for a data-driven approach, emphasizing the importance of considering various indicators and not relying on simplistic binary analyses. Listeners gain insights into the intricacies of monetary policy and the challenges of predicting economic outcomes.
