Fed's Mester: Rates Need to Move Up 'Somewhat Further'

The video discusses the shift in monetary policy from an accommodative to a restrictive stance, highlighting the effects of this transition on the economy. It explains how the current tightening phase is expected to moderate demand and ease inflation pressures, although reaching the 2% inflation target will take time. The economy shows unexpected strength, but core inflation remains high, necessitating further rate increases and careful monitoring.

What is the current phase of monetary policy according to the speaker?

• Middle of the tightening phase

• Beginning of the tightening phase

• End of the tightening phase

• No change in monetary policy

How does the speaker expect the existing tightening measures to affect the economy?

• Increase inflation

• Have no effect on demand

• Decrease demand in product and labor markets

• Increase demand in product and labor markets

What is the speaker's expectation for inflation this year?

• Inflation will reach the 2% goal quickly

• Inflation will remain the same

• Inflation will decrease but not reach the 2% goal

• Inflation will increase significantly

What has been the trend in core inflation according to the speaker?

• Core inflation has been decreasing rapidly

• Core inflation has stalled

• Core inflation has been fluctuating

• Core inflation has been increasing

What does the speaker suggest about the funds rate to ensure inflation returns to the target?

• Decrease the funds rate

• Keep the funds rate unchanged

• Increase the funds rate and hold it

• Eliminate the funds rate