Feds Dudley: Patience Required in Hiking Interest Rates

The transcript discusses the challenges of adjusting interest rates, emphasizing the importance of patience in monetary policy to avoid premature actions that could harm economic recovery. Historical examples, such as Japan in the 1990s and the U.S. during the Great Depression, illustrate the consequences of hasty decisions. The discussion also highlights the significance of reducing unemployment to enhance the economy's productive capacity, stressing the need to reintegrate long-term unemployed individuals into the workforce to prevent loss of employability.

How does pushing the unemployment rate down contribute to economic recovery?

What are the consequences of long-term unemployment on individuals and the economy?