Mester Expects Fed to Reach 2% Inflation Goal in 2025

The video discusses the anticipated trajectory of monetary policy, with the Fed funds rate expected to move above 5% and remain in positive territory. The policy's duration and extent will depend on economic and financial developments. Tighter financial conditions are expected to moderate demand and markets, leading to a decrease in inflation. Output growth is projected to be below trend this year, with a slight increase next year. Unemployment is expected to rise to 4.5-4.75% by year-end, while inflation is projected to decrease to 3.75% by year-end, reaching the 2% goal by 2025.

What is the anticipated trajectory of inflation according to the text?

How much is the Fed funds rate expected to move above 5%?

What factors will determine how long the monetary policy needs to remain restricted?

What is the expected unemployment rate by the end of the year?

When is the inflation expected to reach the 2% goal?