Powell Says There's a Risk the Fed Could Go Too Far

The transcript discusses the potential risks to the US economy if the Federal Reserve overdoes its efforts to control inflation. It highlights the importance of maintaining price stability and the Fed's commitment to using its tools to achieve this. The discussion includes the concept of a low inflation environment, where inflation is low and largely ignored, and the risks associated with transitioning to a high inflation regime due to multiple shocks. The Fed's role in preventing such a transition is emphasized.

What is one risk to the US economy mentioned in the text?

How does the Fed plan to address inflation according to the text?

What could happen if the Fed fails to restore price stability?

What does the text suggest about the relationship between inflation and public attention?

What is the Fed's job in relation to inflation regimes as described in the text?