Fed's Harker Says Higher Inflation Worthwhile to Help Jobs

The video discusses the Federal Open Market Committee's (FOMC) approach to managing interest rates and inflation to achieve full employment. It highlights the acceptance of inflation above 2% to support employment goals, especially benefiting lower wage workers and minorities. The importance of full employment in narrowing societal gaps is emphasized.

Why is it important to tolerate periods of above 2% inflation according to the FOMC?

What challenges does society face in narrowing economic gaps?