Fed Isn't Ready to 'Spill the Beans' Yet, Blinder Says

The video discusses the Federal Reserve's cautious approach to tapering and the market's expectations. It highlights the Fed's focus on economic indicators like inflation and GDP growth to guide their decisions. Despite market speculation, the Fed remains non-committal about the timing of tapering, with officials like Chair Powell and President Williams being particularly reserved. The Fed is monitoring inflation closely, aiming for a significant decrease in monthly inflation rates, with a forecast of 2.1% PCE inflation for the next year.

In what way does the speaker suggest the markets misunderstand the Fed's decision-making process?

What is the forecasted PCE inflation rate for next year according to the Fed?