Fed's Harker Fears 'Falling Behind Curve' on Inflation

The video discusses the Partisan Conflict Index and its correlation with economic outcomes, emphasizing the need for risk-taking in the economy. It highlights the challenges of free trade and the importance of supporting affected workers. The speaker, an engineer, brings a pragmatic approach to the Fed, focusing on modeling and judgment. The Fed's decision-making process, communication issues, and the role of judgment in policy-making are explored. The video also addresses the Fed's credibility in economic predictions, particularly regarding interest rates and inflation, and the importance of transparent communication.

What is the Partisan Conflict Index and how is it related to economic results?

How does free trade impact workers who lose their jobs, and what measures can be taken to support them?

In what ways can judgment be developed according to the speaker, and why is it important in the context of the FOMC?

What are the criticisms regarding the Fed's ability to predict the economy, and how does this affect its credibility?

Discuss the significance of the dot plot in the Fed's communication strategy and its interpretation.

What are the current trends in inflation according to the speaker, and what factors contribute to these trends?

How does the speaker view the Fed's approach to managing inflation and the potential risks involved?