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Why the Fed Cares About Job Satisfaction
Season 2
Episode 84
Published 1 week, 3 days ago
Description
A new Gallup survey shows that 70 percent of American workers say they 'really love' their jobs — the highest level since the question was first asked in 2001. Lucas and Luna unpack why this matters for the Federal Reserve. With wage growth still sticky and quits rates elevated, the Fed is watching whether happy workers are more likely to demand raises or stick around in a tight labor market. The hosts connect the surprising job satisfaction data to the latest Core PCE reading of 3.4 percent, and question whether the Fed's model of a 'neutral rate' needs to account for labor market sentiment. Plus, a brief reflection on how the Fed's focus on inflation sometimes overlooks what workers actually feel.