Is Economic Policy Confused?

The transcript discusses the confusion surrounding the central bank's policy, particularly in relation to productivity and its impact on interest rates and inflation. It highlights the Fed's struggle to understand the current economic performance and the internal politics and divisions within the Fed, especially concerning rate increases and the hawkish versus dovish perspectives.

What are the main challenges the Fed faces in understanding productivity?

What does the speaker suggest about the relationship between the Fed's decisions and inflation concerns?

How does the speaker perceive the Fed's current stance on interest rates?

In what ways does the speaker believe the Fed's understanding of the economy is limited?

What does the speaker imply about the division within the Fed?