Fed's Mester Warns of Falling Behind Rate-Hike Pace

The transcript discusses the Federal Reserve's approach to achieving price stability and maximum employment. It highlights the importance of not overreacting to short-term data and maintaining a gradual increase in the federal funds rate. The discussion includes the potential risks of economic overheating and the need for vigilance to avoid falling behind in policy actions. The speaker emphasizes the importance of timely policy adjustments to prevent recession and protect vulnerable societal groups.

What risks does the speaker mention regarding overly low interest rates?

What potential negative outcome does the speaker warn about if normalization steps are delayed?