Bullard: Fed's New Approach to Inflation Likely to Work

The video discusses the Federal Reserve's new framework targeting a 2% inflation rate, explaining the rationale behind the policy and the expected outcomes. It covers the debate on forward guidance, the impact of fiscal stimulus, and the challenges in achieving the inflation target. The discussion highlights the less preemptive approach to rate hikes and the potential for inflation due to fiscal deficits and economic growth.

In what ways does the speaker suggest the current economic environment differs from previous decades regarding inflation control?

What is the speaker's perspective on the necessity of a new fiscal package?

What challenges does the speaker identify that could hinder achieving the inflation target?