Dudley Says Fed Will Need to Hike Past Neutral to 'Tight'

The transcript discusses the Federal Reserve's approach to achieving its 2% inflation target, emphasizing the need for a tighter monetary policy. It critiques the Fed's communication strategy, suggesting it may undermine credibility if not more transparent about the measures needed to control inflation. The discussion includes an analysis of the Fed's economic projections, which seem overly optimistic about disinflation without significant policy tightening. A comparison is made with the Bank of England's approach, highlighting the challenges of achieving a soft landing while managing inflation and unemployment.

What potential risk does the speaker associate with the Federal Reserve's current approach?

What does the speaker imply about the relationship between unemployment and inflation control?