Equity Rally Emboldens Fed, Morgan Stanley's Caron Says

The transcript discusses the Federal Reserve's response to recent CPI numbers indicating a decrease in inflation. It highlights the easing of financial conditions due to rising equity prices, a falling dollar, and narrowing credit spreads, which could counteract the Fed's efforts to lower inflation. The rally in risky assets is seen as a potential challenge to the Fed's policy actions. The discussion also touches on market corrections and the Fed's strategy to use financial asset prices to manage inflation.

What implications does the speaker suggest about the Fed's ability to raise rates?

According to the speaker, what is the Fed's primary mission?