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00:00I want to talk about what the Fed actually does around the table at the Eccles Building with this report. Do they value an analysis of the inflation adjusted wage. Does the real wage matter. It does because they're looking both at the inflation to see where expectations are what what is happening the labor market and then they look at adjusting for inflation are real wages exploding. They're certainly not exploding. We've got inflation that's much higher than the 5 roughly five and a half percent growth of wages. And so I think as you were saying the Fed is going to take this as this is kind of what we were anticipating that we're not seeing an explosion on the wage side. We're not seeing a collapse of the economy either. I mean these are still very strong numbers. Unemployment rate of three point six percent is still an extremely strong number. It's very rare that the the US economy has a sustained unemployment rate below 4 percent. And so I think it's very much consistent with the Fed's forecasts. And so that means there's nothing that's going to stop them from continuing this march of 50 basis point increases. And as my my former colleague from from graduate school Lael Brainard said they're going to be marching through at least September. In those 50 basis point rate increases.

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What the May Jobs Report Means for the Fed's Policy Path

Former Federal Reserve Governor Randy Kroszner, a University of Chicago Booth School economics professor, says the May employment report will spur the Fed to raise rates by 50 basis points at least through September. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

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