Stifel's Piegza Sees Fed Focused on Soft Inflation Data

The video discusses the current economic situation, highlighting better-than-expected data from the Richmond Fed. It explores the Federal Reserve's focus on inflation and its dual mandate of stable prices and full employment. Despite signs of disinflation, the Fed maintains its forecast, expecting inflation to align with its 2% target in the long term. The Fed's current monetary policy is based on these expectations, though it faces challenges if inflation does not reverse as anticipated.

What recent data has the Fed been focused on regarding inflation?

How does the Fed's dual mandate influence its monetary policy decisions?

Why might the Fed consider the recent soft inflation data to be temporary?

What are the expectations for inflation over the next 12 to 24 months according to the Fed?

What challenges does the Fed face if inflation does not reverse course?