Mester Sees 'Compelling' Case for 50 Bps Fed Rate Hike

The video discusses the Federal Reserve's commitment to price stability and maximum employment, highlighting the transition from an accommodative to a restrictive policy stance. It emphasizes the need to raise the federal funds rate above 5% to curb inflation, depending on economic indicators like demand, supply challenges, and price pressures. The speaker supports a 50 basis point increase to ensure inflation returns to a sustainable 2% path, based on recent economic data and market expectations.

What is the target inflation rate that the speaker aims to achieve?

What was the compelling economic case mentioned for a 50 basis point increase?