Lacker: 'Substantial' Fed Rate Hikes Needed

The video discusses the Federal Reserve's approach to monetary policy, focusing on the need for significant rate hikes to control inflation. It highlights the market's underestimation of inflation persistence and the potential for policy mistakes by the Fed. The discussion also covers the impact of rate hikes on demand and the housing market, the role of fiscal policy, and the influence of global central banks on the Fed's decisions.

What lessons should the Fed learn from past inflation surges?

What role does fiscal policy play in conjunction with the Fed's monetary policy?

How might the ECB's policy changes impact the Fed's decision-making?