"Gary Cohn, IBM vice chairman and former chief economic adviser to President Donald Trump, warned that significant job losses are necessary to get inflation under control.
“We’re going to have to see job destruction if we’re really going to see inflation be curtailed,” Cohn said in an interview during Yahoo Finance’s All Markets Summit on Monday (video above)."
Not necessarily. Currently, there are more jobs than available applicants. Thus, what will likely happen is an elimination of the large number of surplus jobs (for which there are no applicants).
Exactly. The large number of jobs without available workers is inflationary. Employers have to offer higher wages to attract applicants from existing positions, or to attract people out of the “not currently looking for work” category. Higher wages means higher prices for the goods and services provided by those wages.
All that needs to happen on the labor front is the elimination of unfilled jobs. No one actually needs to lose their job to eliminate this jobs overhang.
Of course, here in the real world, there will likely be some job loss because the Fed is going err on the side of keeping interest rates up rather than allowing them to come down too soon and start more inflation.
My crystal ball - which seems to have spent the early part of it’s career as a pinata ball - says not to look for any interest rate easing until inflation is at least 1% below the Fed’s interest rate target AND unemployment is 5% or higher.
Gary hates most Americans and loves, loves himself and his wallet even more.
Such a wonderful human being.
Meanwhile he does not know what he is talking about. Amazing he has other people’s money.