Global Data Watch Weekender: It’s the job market, stupid

Fading caution that leads to firming global labor markets is the central rotation to keep the expansion going—away from balance sheets last year and toward labor income–driven consumer spending this year. Job market performance will also be central to presumptive Fed Chair Warsh’s ability to either deliver cuts or be stymied by a more cautious FOMC. Given the upward pressures on inflation in 1H26, inflation is less likely to be an x-factor pointing to lower Fed rates.

Speakers: 

Bruce Kasman

Joseph Lupton

This podcast was recorded on 6 February 2026.

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