Fed's Mester Says She's Comfortable With Inflation a Little Bit Above 2%

The video discusses the Federal Reserve's approach to managing inflation, aiming for a 2% target. It explains the importance of not overreacting to temporary fluctuations above this goal, provided forecasts predict a return to target levels. The discussion also covers the relationship between inflation and wage growth, highlighting the role of productivity and investment in influencing wages. The video emphasizes the need for careful economic forecasting to guide monetary policy decisions.

What is the speaker's perspective on the current state of consumer price inflation compared to hourly earnings?

What does the speaker suggest about the relationship between productivity growth and wage levels?