In the fight to combat high inflation, the Fed has tightened aggressively, which seems all but guaranteed to continue in the near term, especially given recent higher than expected U.S. inflation numbers.

But how much damage to economic growth will the than expected US inflation numbers.

But how much damage to economic growth will the Fed ultimately have to inflict to win this fight?

I'm Allison Nathan and this is exchanges at Coleman Sachs. On this episode, we're breaking down my most recent top of my report.

The gap between the number of jobs firms are looking to fill and the number of workers

looking for jobs remains unusually large in the United States, a clear sign of an overheated

labor market.

A heated debate has emerged about whether the Fed can alleviate

this overheating, which is critical to taming inflation,

without a sharp rise in unemployment

and its recessionary consequences.

That's something that's never happened before.

We speak with the Peterson Institute's Olivier Blanchard and Jan Hatzius are head of global

investment research and chief economist who are on opposite

sides of this debate. Blanchard sees no chance of job openings declining without a

large increase in unemployment. He believes that the current difficulty in matching workers with jobs

will persist. There seems to be a hope of some immacritic conception outcome in

which basically job openings decrease and unemployment is an increase.

It will not happen. There are two reasons.

It has never happened. We've had many turnarounds and each time

they can see is decreased and unemployment employment increased no exception right so that's

fairly strong enough. The issue is that we're at the level of vacancies or job openings which we've never seen before so we

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