Daly: Fed Needs to Be Mindful About Lag Effects of Hikes

The transcript discusses the importance of adopting a sufficiently restrictive stance to reduce inflation and restore price stability. It highlights the need for careful adjustments, warning that too little adjustment will keep inflation high, while too much could cause an unnecessary economic downturn.

What could be the consequence of adjusting too little in economic policy?

What are the potential risks of adjusting too much in economic policy?