Can the US Live With 4% Interest Rates?

The video discusses recent interest rate upgrades by banks, focusing on the potential impact of a 4% rate on the economy. It highlights the debate on whether the economy can sustain such rates given high debt levels. The Conference Board's early predictions on interest rates are mentioned, along with the potential for a mild recession. Despite this, the labor market is expected to remain strong due to labor shortages, suggesting continued hiring. The video concludes that elevated interest rates are necessary to tackle inflation, which is the primary concern.

How does the speaker describe the current state of the labor market?

What is considered the worst problem in the economy according to the speaker?