Federal Reserve Is Whetting Appetite for a Half-Point Rate Hike

The video discusses remarks by John Williams, President of the Federal Reserve Bank of New York, on the Fed's balance sheet runoff as a policy tool to address inflation. It highlights Mary Daly's stance on rate hikes and the strong labor market. The concept of the neutral rate is explored, with insights from various Fed officials and experts, emphasizing its role in managing inflation without causing a recession.

What is the significance of the neutral rate according to John Williams?

What challenges does Jay Powell mention regarding guiding policy with traditional star type guideposts?