Fmr. Fed President Broaddus Says FOMC's View on Inflation Has Changed

The transcript discusses the Federal Reserve's shift to a more dovish stance, focusing on the risks of lower inflation. It analyzes the Fed's dot plot, indicating a less likely rate increase and potential for a rate cut if negative economic signals arise. The global economic slowdown, particularly in Europe and China, is considered in Fed policy. The discussion also covers potential risks to the US economy, such as weak consumer spending and housing. Criticism of the Fed's approach is addressed, emphasizing their balanced view on economic risks.

What signals in economic data could indicate a need for the Fed to adjust its policies?

What does the term 'balance of risk' refer to in the context of the Federal Reserve's outlook?

How does the current economic data compare to the previous year's outlook according to the discussion?