In their recent podcast, Glenn Hubbard and Tony O'Brien discuss the current state of the U.S. economy amid data gaps caused by government shutdowns, highlighting persistent inflation and the Federal Reserve's dilemma over interest rate cuts. They explore the impact of artificial intelligence on the labor market, noting uncertainty about whether recent layoffs are a sign of deeper structural changes or typical market churn. The conversation also covers the effects of tariffs, emphasizing the complexity of predicting price changes and the dual goals of protection and revenue generation, while underscoring the importance of monitoring these developments for future economic policy.
