AI Bubble, Inflation, and the Limits of Monetary Policy | Jason Furman

What's up, everybody? My name is Demetri Kofinas, and you're listening to Hidden Forces, a podcast that inspires investors, entrepreneurs, and everyday citizens to challenge consensus narratives and learn how to think critically about the systems of power shaping our world. My practice of economic policy at Harvard University and a former chair of the Council of Economic Advisors who comments regularly on The US economy, inflation, and monetary policy. Jason and I spend the first hour of this conversation exploring his economic framework and his time working inside the Clinton and Obama White Houses and how these experiences shaped his perspective on the proper role of government in the economy. Adoption of AI in The US service sector. We also discuss the limitations of our inflation models, where service sector. We also discussed the limitations of our inflation models, whether we have a good working understanding of the causes of inflation, whether the Fed has implicitly raised its inflation target, and how large structural deficits and political constraints will shape the Fed's ability to manage that target in the years ahead. In the second hour, we switch to a discussion about the politics of affordability and a broadening sense, especially among younger Americans, that the social contract of their parents and grandparents is broken and that the costs associated with achieving the American dream have become insurmountable for almost all but the very wealthy. Jason and I debate the political appeal and efficacy of price controls and the extent to which tariffs, industrial policy, and currency depreciation can or should be used to reshape global supply chains and rebuild US domestic manufacturing in areas deemed critical for national security. We also discussed The US trade deficit and capital account surplus, what a weaker dollar may tell us about the government's policy objectives, how corruption, institutional decay may eventually feed back into foreign appetite for US assets, and what is at stake in the choice of the next Fed chair, both for the independence of the central bank and for the long term credibility of American monetary policy. If you want access to this part of the conversation and you're not already subscribed to Hidden Forces, you can join our premium feed and listen to the second hour of today's episode by going to hiddenforces.io/subscribe. All of our content tiers give you access to our premium feed, which you can listen to on your mobile device using your favorite podcast app just like you're listening to this episode right now. If you wanna join in on the conversation and become a member of the Hidden Forces genius community, which includes q and a calls with guests, discounted access to third party research and analysis, and in person events like our intimate dinners and weekend retreats, you could also do that on our subscriber page. And with that, please enjoy this thoughtful discussion about The US economy, government policy, and the long term structural challenges and opportunities facing the country with …