Former Fed Official Stern on Fed Communication

The transcript discusses the Federal Reserve's communication strategy and the diminishing returns of its current approach. It suggests narrowing the number of speakers to improve clarity. The Fed's mandate of high employment and price stability is considered achieved, and the focus is on maintaining this with appropriate interest rates. The discussion also covers the FOMC's communication discipline and the potential modest impact of gradual interest rate increases on economic growth.

What is the significance of achieving both high employment and price stability for the Federal Reserve?

In what ways can a gradual increase in interest rates affect economic growth?