Krugman Cautions Fed About 'Slamming on the Brakes'

The transcript discusses the persistence of inflation, initially thought to be transitory, due to supply chain issues and a tight labor market. It highlights consumer and market expectations of inflation, the Federal Reserve's cautious approach to monetary policy, and the impact of economic shifts on inflation. The discussion also touches on political influences on economic perceptions and the challenges faced by the Federal Reserve in balancing inflation control with economic growth.

What does Powell mean by saying that the economy has hit the speed limit?

In what ways do political perceptions affect public sentiment about the economy?

How do people's personal financial situations contrast with their views on the overall economy?