Dudley 'Absolutely' Backs Powell Fed Chair Renomination

The transcript discusses Treasury Secretary Yellen's endorsement of Powell for a second term as Federal Reserve Chair, highlighting its significance due to her respected status. Powell is seen as a capable leader with bipartisan support, making his reappointment likely. The discussion shifts to inflation, focusing on whether it is transitory or persistent, with the Fed monitoring labor market slack and inflation expectations. The transcript concludes with strong support for Powell's reappointment, citing his clear articulation of Fed policy.

How does the labor market influence inflation expectations according to the text?

What is the Federal Reserve's target inflation rate, and how does it relate to current inflation expectations?