Fed's Williams Says Half-Point Rate Hike Is 'Reasonable Option'

The video discusses the need to return to a neutral federal funds rate, emphasizing the importance of data dependency and economic conditions. It highlights the necessity to reverse policies implemented in March 2020 and considers future rate adjustments. The decision-making process is explored, with potential options for rate changes being discussed. The video concludes with a focus on reasonable options for achieving more neutral levels.

What does the speaker mean by 'data dependent' in the context of economic policy?

What factors will determine the timing of adjustments to the federal funds rate?