University of Maryland's Kalemli-Ozcan on Powell Remarks

The transcript discusses the Federal Reserve's potential rate hikes, focusing on Jay Powell's strategy to signal the markets and align the Federal Market Committee. It highlights the shift from a forward guidance policy to a data-driven approach due to economic uncertainties post-COVID. The discussion also covers market reactions, the importance of positive real rates, and the debate within the FOMC regarding the appropriate level of rate hikes to control inflation.

What are the potential risks associated with the Federal Reserve's current monetary policy?

What is the significance of achieving positive real rates in monetary policy?

How might the Federal Reserve's decisions impact the labor market?