Kocherlakota: Fed Staying Patient as It Watches Inflation

The transcript discusses the Federal Reserve's focus on inflation control, comparing reactive and proactive strategies. It highlights the importance of monitoring inflation expectations and international risks. The discussion also covers the concept of overshoot in inflation control and the Fed's strategic approach to achieving a 2% inflation target sustainably.

What is the primary focus of the Federal Reserve according to the first section?

• Employment

• Inflation

• International trade

• Interest rates

How does the Yellen Fed's approach differ from the Greenspan Fed's approach?

• It is more proactive

• It emphasizes patience

• It targets higher interest rates

• It focuses on employment

What strategy does President Evans suggest regarding inflation?

• Raising rates immediately

• Ignoring international risks

• Waiting for core inflation to reach 2%

• Focusing on employment

What is a potential challenge when aiming for an inflation overshoot?

• Controlling employment rates

• Managing international trade

• Dealing with unexpected shocks

• Increasing interest rates

What is the Fed's target inflation rate under the discussed strategy?

• 3%

• 2.25%

• 2%

• 1.5%