Yellen Says Gradual Rate Hikes Are Still Warranted

The video discusses the current economic projections, highlighting stronger GDP growth and softer core inflation. It explains the Federal Reserve's decision to maintain the federal funds rate while expecting gradual increases to support a healthy labor market and stabilize inflation. The concept of the neutral rate is explored, noting its current low level and the expectation of future increases. The video concludes with the anticipation of additional rate hikes to sustain economic expansion, while acknowledging that the long-term neutral rate will likely remain below historical levels.

According to the text, what is the long-term objective for inflation?

What does the text suggest about the future of the economic expansion?