Fed's Bullard: Inflation Is 'Far Too High for Comfort'

The transcript discusses the high inflation rates in 2022 and the need for economic policies to control it. The speaker outlines plans to adjust the Fed funds rate and initiate balance sheet runoff to manage inflation. Market pricing and interest rates are analyzed, comparing pre and post-pandemic levels. The speaker highlights persistent components of inflation, such as the Dallas Fed trim mean, and stresses the importance of reaching a neutral policy stance quickly to assess further actions. The goal is to apply downward pressure on inflation while avoiding market disruptions.

What components of inflation are expected to moderate, and which are not?

Why is it important to reach a neutral policy stance quickly?