Mester Says Fed Won't Rule Out 75-Bps Hike Forever

The transcript discusses the Federal Reserve's approach to managing inflation through interest rate adjustments. It explores the potential for 50 or 75 basis point moves and the implications for unemployment and economic growth. The conversation highlights the need to align demand with constrained supply and the importance of using monetary tools to achieve a 2% inflation goal. The discussion also covers the impact of economic indicators like GDP and consumer spending on policy decisions, emphasizing the goal of maintaining healthy labor markets while controlling inflation.

What is the aim of using tools to align demand with constrained supply?

What factors does the speaker mention that could influence the adjustment of policy rates?

How does raising interest rates affect unemployment according to the speaker?

What are the potential consequences of tightening financial conditions mentioned in the text?

What does the speaker suggest about the relationship between inflation and labor markets?