Powell Says Fed Will Raise Rates Faster If Necessary

The video discusses the importance of maintaining price stability to ensure strong labor market conditions. It outlines potential monetary policy actions, such as raising the federal funds rate, to achieve this goal. The video also emphasizes the significance of monitoring inflation expectations and the impact of external factors like the Ukraine invasion on inflation. The need for the committee to act swiftly to prevent long-term inflation expectations from rising is highlighted.

What does the monetary policy framework emphasize regarding inflation expectations?

What risks are associated with an extended period of high inflation?