Lacker Says 3%-4% Fed Rates Wouldn't Be Surprising

The transcript discusses the historical and current approaches of the Federal Reserve to inflation and monetary policy. It compares past inflation episodes, such as those in 1947 and the late 1960s, with current challenges. The conversation highlights the Fed's shift in focus towards employment over inflation control, potential rate hikes, and the implications for markets and the economy. The discussion also touches on the complexities of achieving maximum employment and the political and economic factors influencing Fed decisions.

How did the Fed historically react to inflation scares according to the discussion?

What historical events does Paul Krugman reference in relation to inflation?

What significant shifts in fiscal and monetary policy occurred during the 1960s and early 70s?

What are the implications of the Fed's current approach to inflation and employment?

Discuss the potential consequences of the Fed's policy blunders as mentioned in the conversation.

What does the discussion suggest about the relationship between inflation and political implications?

How does the concept of maximum employment evolve according to the speakers?