Fed's Barkin Wants Inflation in 'Moderate Range Around 2%'

The transcript discusses monetary policy aimed at achieving inflation slightly above 2%, with Tom Barkin supporting a range around this target. It highlights a potential disconnect between Wall Street's perception and the Federal Reserve's guidance, emphasizing the importance of credit demand and legislative action. The conversation shifts to forward guidance and the economic outlook, noting the potential for inflation overshoots. Concerns about financial stability, particularly in equity markets, are addressed, with a focus on leverage levels rather than market movements.

What is the range of inflation that Tom Barkin supports?

• 1% to 2%

• 1.5% to 2.5% or 1% to 3%

• 2% to 3%

• 2.5% to 3.5%

What is the main reason Wall Street might not align with the Federal Reserve's guidance?

• Interest rates have no impact on the economy

• Demand for credit needs to increase

• The Federal Reserve's guidance is unclear

• Capitol Hill's actions are irrelevant

What does the Federal Reserve consider particularly powerful as the economy recovers?

• Tax reductions

• Forward guidance

• Increased government spending

• Interest rate cuts

What financial concern is associated with 'lower for longer' interest rates?

• Increased inflation

• Rising PE ratios and financial stability

• Decreased consumer spending

• Higher unemployment rates

What does the speaker monitor more closely than equity markets?

• Leverage levels

• Inflation rates

• Government spending

• Interest rates