Powell: History Cautions Against Premature Policy Easing

The transcript discusses the Federal Open Market Committee's (FMC) efforts to control inflation by adjusting the federal funds rate. It highlights the current economic conditions, including high inflation and a tight labor market, and outlines recent and potential future monetary policy changes. The need for a restrictive policy stance to maintain price stability is emphasized, with projections indicating a federal funds rate slightly below 4% through 2023.

What was the target range for the federal funds rate set during the most recent meeting?

What factors will influence the decision at the September meeting regarding monetary policy?

Why is it important to maintain a restrictive policy stance for some time?

What does the historical record suggest about loosening monetary policy?

What was the median federal funds rate projected to be through the end of 2023?