In the media | 06 Jul 2021

Kathy Bostjancic on Macro Matters: Where have all the workers gone?

Kathy Bostjancic, Chief US Financial Economist at Oxford Economics and joins Macro Matters’ host Paul Diggle to discuss the US labour market and its implications for the Federal Reserve.

What’s been holding back labour supply and how temporary or permanent is this? What’s behind the change in the dot plot and to what extent do markets need to fret about a more hawkish Fed? Following the COVID-19 pandemic, the US is seeing a slower than expected recovery of the labour market. We discuss the potential causes and the future outlook. Part 1 focuses on the labour market, the causes behind mismatched labour supply and demand, and the implications for inflation. Part 2 discusses the June Federal Reserve meeting and what monetary policy normalisation means for financial markets.

Listen to the full interview below. 

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