John Taylor: US Inflation Is Not Low Enough for the Fed

The transcript discusses the current state of inflation and the Federal Reserve's response, including interest rate adjustments and the application of the Taylor Rule. It explores the concept of a soft landing, the challenges of communication for the Fed, and the importance of historical lessons in shaping current strategies. The global interconnectedness of economies, particularly the influence of China and Europe, is also highlighted as a factor affecting Fed policy decisions.

What are the potential risks of a wage-price spiral, and how can the Fed prevent it?

What factors should the Fed consider when deciding to slow down the pace of rate hikes?

What actions does the Fed need to take to effectively manage inflation?

In what ways could the Fed's inflation target be reconsidered in the future?