Recession Rules Reexamined
The discussion delves into the SAHM rule, originally designed to trigger timely fiscal responses during recessions, but now faces challenges due to unprecedented supply shocks since the pandemic. While the rule aims to provide guidance based on historical patterns, current economic conditions reveal concerning signs in the labor market, suggesting that political will for fiscal intervention is lacking. Instead, the focus may shift to monetary policy, with expectations of potential rate cuts on the horizon.In this clip
From this podcast
Odd Lots
Lots More With Claudia Sahm on What the Sahm Rule Is Saying Now
Related Questions
What is the so-called Sahm rule and how does it relate to the current labor market situation as discussed in the episode Adam Posen on the Dangers of Jerome Powell's 'Rifle Shot' Jackson Hole Speech and the clip Labor Market Dynamics?
Was the economy headed for a recession?
Was the economy headed for recession?