John W. Diamond explains why a weakening labor market is pushing the Federal Reserve to cut the federal funds rate (even in the face of sticky inflation). He also unpacks the looming government shutdown — and why, unless Washington reforms its budget process, we should expect bigger deficits and higher inflation risk.
This conversation was recorded on Sept. 16, 2025.
Clips used in this episode:
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“The Two-Handed Economist” delivers timely analysis of economic news from John Diamond, director of the Baker Institute Center for Tax and Budget Policy. Each week, John dives deep into the latest policy developments — mostly at the federal level, but with insights now and again into Texas and Houston finance as well.
Why a two-handed economist, you might ask? President Harry Truman famously asked for a one-handed economist, tired of hearing, “On the one hand, this,” and “On the other hand, that.” John embraces the complexity that a one-handed economist might shy away from, explaining how it all adds up for consumers, businesses, and policymakers.
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