Yellen Warns Fed of Moving Too Gradually on Rates

The transcript discusses the importance of a gradual approach to monetary policy adjustments due to significant uncertainties. It highlights the risks of moving too quickly, which could lead to over-adjustment, and the dangers of moving too slowly, which could result in an overheated labor market and inflation. The text also addresses the potential financial stability concerns associated with persistently easy monetary policy and emphasizes the need for timely adjustments to avoid adverse economic impacts.

What are the implications of persistently easy monetary policy on financial stability?

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How does monetary policy affect economic activity and inflation over time?

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