Professor Betsey Stevenson Previews Fed Decision

The transcript discusses the current state of inflation, highlighting both optimistic and challenging aspects. It explores the Federal Reserve's decision-making process, emphasizing the importance of public expectations and data dependency. The discussion covers the labor market's normalization, price levels, and the challenges of deflation. It also examines the impact of monetary policy on the labor market and the potential consequences of future rate hikes on the Fed's credibility.

In what ways is the labor market described in the context of inflation?

What is the significance of relative price changes in the current economic situation?

What potential impacts on Fed credibility are discussed regarding their rate hike decisions?