U.S. Economy Approaches Fed's Goals

The transcript discusses Janet Yellen's inflation outlook, predicting a rise to 2% over the next few years, and the implications for the labor market and interest rates. It covers market reactions, including changes in yields and foreign exchange rates, and the impact on European assets. The discussion also touches on the Fed's neutral rate, economic projections, and the uncertainty in predicting the Fed's rate path. The credibility of the Fed and market expectations are also examined, highlighting the challenges in forecasting economic conditions.

How does the market react to Yellen's statements regarding interest rates?

What challenges does the Fed face in predicting the economic outlook?

In what ways has the Fed's credibility been questioned according to the discussion?