Is the Fed Willing to Let Inflation Run Hot?

The transcript discusses the Federal Reserve's stance on inflation expectations, highlighting that current market-based measures are below the Fed's long-term target. It explores the possibility of the Fed allowing inflation to run higher and the implications of US real interest rates on global financial conditions. The Fed's communication strategy aims to retain the option to hike rates, with improving labor market data and inflation indicators. The discussion also touches on the Fed's inflation target and the credibility of market expectations.

What implications does the depreciation of the dollar have on inflation expectations?

What is the significance of the five-year five-year break evens in relation to the Fed's inflation target?