Mester: We Need to Raise Rates Even Higher

The video discusses the forecast for the federal funds rate at the end of 2023, highlighting a slightly higher path than the median due to inflation persistence. It emphasizes the need to continue raising interest rates to combat inflation, which remains high despite some positive news. The discussion also covers the reasons for adjusting inflation forecasts, noting that inflation ran higher than expected, necessitating further interest rate adjustments to achieve price stability and a 2% inflation target.

What is the speaker's stance on the federal funds rate forecast for the end of 2023?

• Significantly higher than the median

• Lower than the median

• Equal to the median

• Slightly higher than the median

Why does the speaker believe interest rates need to be raised further?

• To stabilize the stock market

• To decrease unemployment

• To combat persistent inflation

• To encourage economic growth

What is the speaker's view on the current state of inflation?

• Inflation is at a desirable level

• Inflation is still too high

• Inflation is not a concern

• Inflation is decreasing rapidly

What was the reason for raising the inflation forecast?

• Inflation was lower than expected

• Inflation was as expected

• Inflation was not measured

• Inflation ran higher than expected

What is the ultimate goal of the Fed's policy adjustments?

• To achieve 3% inflation

• To maintain current inflation levels

• To return inflation to 2% sustainably

• To increase inflation to 4%