Powell Says Fed Will Act 'Forthrightly' on Inflation

The transcript discusses the Federal Reserve's approach to controlling inflation, drawing lessons from past efforts led by Paul Volcker. It emphasizes the need for decisive action to prevent inflation from becoming a norm, which would increase the difficulty and cost of reducing it. The Fed is committed to maintaining price stability and is focused on achieving a 2% inflation target. The speech delivered was concise, focusing on the Fed's responsibility and the risks of prolonged high inflation. The Fed's commitment to its goals is highlighted, with an assurance that political factors do not influence its policy decisions.

What was a significant challenge in controlling inflation during the period of the great inflation?

• Lack of public awareness

• Political interference

• Public expectation of continued high inflation

• Insufficient monetary policy tools

Why did the speaker choose to deliver a concise and focused message at Jackson Hole?

• To address political concerns

• To emphasize the Fed's commitment to inflation control

• To extend the speech duration

• To cover multiple economic topics

What is the Fed's target for inflation over time?

• 1%

• 2%

• 3%

• 4%

What does history caution against in terms of monetary policy?

• Ignoring public opinion

• Focusing solely on inflation

• Prematurely loosening policy

• Delaying policy changes

How does the Fed ensure its accountability to the public?

• By conducting public surveys

• By following political directives

• Through media briefings

• Through Congress