Episode 113: Inflation, Labor Markets, and the Fed featuring Mike Ashton, the Inflation Guy

In this engaging episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes back Mike Ashton, aka “The Inflation Guy,” to discuss the Federal Reserve’s current stance on inflation, the effectiveness of monetary policy, and what the future might hold for the economy. Mike shares his thoughts on how the Fed’s strategy has changed, shifting focus from managing money supply to interest rates—a tool that he argues has its limitations and potential risks. He underscores the complexities of using interest rates to manage inflation without precise knowledge of the demand curve, noting that the Fed's approach may yield unexpected outcomes.

Mike and Stewart also explore the role of inflation in managing public debt, debunking the notion that high inflation will ease the U.S. debt burden. They touch on how structural changes, such as near-shoring and labor shortages, may reshape the economy, ultimately empowering labor over capital—a trend that could impact corporate earnings. Lastly, Mike provides his forecast for interest rates and his thoughts on AI's potential effects on the labor market.