Part 7/11:
Furthermore, unemployment benefits remain longer on average, and job market dynamics indicate that hiring is slowing. This raises questions about the health of the economy, contradicting some Fed signals that the job market is robust.
Inflation and the Federal Reserve's Approach
A critical point in the discussion revolves around inflation measurement. Experts critique the current inflation metrics, particularly the Owner's Equivalent Rent (OER) component of CPI, which heavily influences inflation calculations. The methodology, based on surveys and outdated data sources like Zillow, tends to overstate rental inflation, with some estimates suggesting actual rent increases are substantially lower.