The Fed Needs to Move Quickly: Kroszner

The video discusses the expected path of the Federal Reserve's funds rate, anticipated to reach 4% and remain there for some time. The duration depends on various factors, including labor market statistics and wage trends. Currently, the economy is stable, allowing the Fed to act without political pressure due to low unemployment rates. This is seen as an opportune moment to raise rates to curb inflation expectations.

Why is it important for the Fed to act quickly in the current economic climate?

What are the potential consequences of not addressing inflation expectations?