Fed May Have to Stay Higher for Longer, Jim Bianco Says

The discussion centers on the shift in focus from whether inflation has peaked to how low it can go. The Fed's long-term goal is to achieve 2% inflation without causing a recession. Current core inflation is at 3%, and the Fed may need to maintain higher rates if inflation stabilizes at a higher level. The conversation also explores the relationship between unemployment and inflation, questioning if unemployment needs to rise to control inflation. The Fed's new metric, Services Act shelter, is introduced to assess inflation driven by employment.

What is the Fed's long-run goal for inflation mentioned in the text?

What potential outcome does the speaker suggest if unemployment rises significantly?