Fed's Bullard Concerned About U.S. Inflation

The video discusses the issue of inflation missing its target for five years, being 4.5% below the desired level. It highlights a chart showing inflation trends from 1995 to 2012, noting that the price level was on track until 2012 but has since fallen off. The speaker expresses concern about the Fed's policy of rate hikes potentially pushing the price level further below the target path, which could risk another recession. The discussion emphasizes the importance of price level targeting and the challenges faced in achieving the inflation target.

What does the speaker suggest might be necessary to get the price level back on track?

What is the speaker's perspective on the effectiveness of the Fed's policies in achieving the inflation target?