Blinder: Fed Is About to Overshoot Its Inflation Target

The video discusses the evolution of central banking, highlighting the shift towards greater transparency and communication with the public. It examines the Fed's reaction function, focusing on factors like labor market tightening and inflationary pressures that influence interest rate decisions. The discussion also covers the Fed's willingness to tolerate inflation overshoots and recent economic projections indicating rising inflation and falling unemployment rates.

What is the significance of the unemployment rate in the context of the Federal Reserve's economic projections?

What does the text suggest about the current state of inflation in relation to the Federal Reserve's target?