The U.S. is enjoying one of its best stretches of economic performance in years. Growth is strong, unemployment is low, and, though it remains elevated, inflation has fallen sharply. As the rest of the world stagnates, America seems to be booming. 

But how good are things really and can they last? And will the Fed’s continuing struggle to get inflation down eventually push the economy under? On this episode of the Free Expression podcast, economist and former presidential adviser Glenn Hubbard tells Wall Street Journal editor at large Gerry Baker how the Fed is facing a tough challenge to get inflation under 3%, and why he thinks policy will remain tight for some time. But he also says the U.S. is undergoing structural changes such as the rise of generative artificial intelligence that could be improving productivity performance in the long run. 

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