Fed Wants to Keep Rates Near Zero Until Inflation Hits 2%

The transcript discusses the Federal Reserve's approach to inflation and monetary policy, emphasizing the need for inflation to moderately exceed 2% to anchor expectations. It highlights the economic recovery from the pandemic, the importance of fiscal support, and the impact of technology on disinflation. The Fed's dual mandate of maximum employment and price stability is central, with a focus on not prematurely tightening policy despite potential asset bubbles.

What challenges does the economy face in recovering from the pandemic?

What is the relationship between financial stability and monetary policy?

What role does fiscal policy play in achieving maximum employment?

How does technology impact inflation according to the text?