Mishkin: Fed Policy Is Hibernating, May Be Behind the Curve

The video discusses the Federal Reserve's monetary policy, focusing on the Phillips curve and average inflation targeting. It highlights the challenges posed by current economic conditions, including high demand and fiscal policy impacts. The labor market's participation rate is examined, and the need for the Fed to address inflation promptly is emphasized. The discussion draws parallels to past economic scenarios and stresses the importance of managing inflation expectations effectively.

In what way does the speaker compare the current economic situation to that of the 1960s?

What does the speaker suggest about the Federal Reserve's approach to managing inflation expectations?