Fed's Rate Hike Path: Why Yellen Has to Tread Carefully

The transcript discusses the role of inflation in economic policy, emphasizing that it is a lagging indicator and should not be the sole focus when assessing economic health. The conversation highlights the risks of inflation exceeding target levels and the Federal Reserve's strategies to manage such scenarios, including asset sales and interest rate hikes. It also covers the Fed's communication efforts to align market expectations, despite challenges like poor job reports, underscoring the importance of maintaining credibility and readiness to adjust rates.

How does the Fed plan to manage inflation when the time comes?

Evaluate responses using AI:

OFF

What does the recent jobs report indicate about the Fed's communication strategy?

Evaluate responses using AI:

OFF