Quarles: Inflation Fight May Lead to 'Brief' Recession

The transcript discusses the Federal Reserve's response to inflation in early 2021, initially seen as temporary due to supply chain disruptions. By late 2021, it became clear that demand-driven factors were at play. The Fed's new framework, focusing on inflation targeting and labor market metrics, is analyzed. The challenges of reducing inflation without causing a recession are highlighted. Current Fed strategies, including interest rate adjustments, are debated. The impact of leadership changes on regulatory policy, particularly regarding Basel 3, is also discussed.

What were the initial beliefs about inflation in the first half of 2021?

What was identified as the principal driver of inflation at the beginning of June 2021?

How did the speaker describe the inflation situation by September 2021?

What challenges does the speaker foresee in bringing down inflation?

What principle did the speaker reference regarding the Fed's approach to inflation?

What are the implications of not having a vice chair for supervision at the Fed?

What specific regulatory framework was mentioned that has not yet been proposed?