It Makes Sense for the Fed to Be Cutting Rates, Randall Kroszner Says

The video discusses the differing views among Federal Reserve members on interest rate cuts. Jim Bullard advocates for a 50 basis point cut, while Eric Rosengren opposes it due to a strong economy. Jay Powell is concerned about global slowdown and trade uncertainty. The discussion emphasizes the importance of inflation goals and the risk of losing credibility if inflation targets are not met. The yield curve's inversion and low inflation expectations are analyzed, highlighting market concerns about the Fed's ability to meet its 2% inflation target.

What does the speaker suggest about the Fed's control over the bond market?

How do low inflation expectations affect the Fed's credibility according to the speaker?