Fed's Brainard: Restrictive Policy Needed for Some Time

The transcript discusses the current economic indicators, highlighting a deceleration in wages and stable inflation expectations. It suggests that these factors may prevent a wage-price spiral similar to the 1970s. The Federal Reserve has moved its policy into restrictive territory to manage inflation and employment goals, adjusting the pace of interest rate increases. Despite high inflation, the policy needs to remain restrictive to achieve a sustained 2% inflation rate.

What are the indications of wage deceleration mentioned in the text?

How have inflation expectations been characterized in the text?

What does the text suggest about the Federal Reserve's policy actions?

What are the potential risks mentioned in relation to employment and inflation goals?

What is the significance of maintaining a restrictive policy according to the text?