Kashkari Says Fed 'Needs to Do More' on Hot Labor Market

The video discusses the Federal Open Market Committee's (FOMC) process of forecasting optimal monetary policy and the challenges faced due to the failure of traditional economic models in predicting inflation during the economy's reopening. It highlights the need for decision-making in the absence of reliable models, focusing on raising interest rates to achieve positive real interest rates. The video also analyzes current inflation trends, particularly in oil, food, and housing, and examines the labor market's response to rate hikes, indicating the need for further actions to balance the economy.

What has been the trend in headline inflation according to the speaker?

What does the speaker indicate about the labor market in relation to the rate hikes?