Clarida: Yellen Aiming to Raise Rates and Inflation

The transcript discusses the Federal Reserve's struggle to achieve its 2% inflation target and the concept of an inflation overshoot. It highlights the challenges faced by the Fed in raising rates with inflation below target, the dynamics within the FOMC, and the potential impacts of an inflation overshoot. The discussion includes insights into the Fed's communication strategy and the influence of committee members on decision-making.

How does the split within the Federal Reserve's committee affect decision-making regarding interest rate hikes?

What implications does a modest overshoot of inflation have for the Federal Reserve's credibility?