Fed May Have to Stay Higher for Longer, Jim Bianco Says

The discussion centers on the shift in focus from whether inflation has peaked to how low it can go. The Fed's long-term goal is to achieve 2% inflation without causing a recession. Current core inflation is at 3%, and the Fed may need to maintain higher rates if inflation stabilizes at a higher level. The conversation also explores the relationship between unemployment and inflation, questioning if unemployment needs to rise to control inflation. The Fed's new metric, Services Act shelter, is introduced to assess inflation driven by employment.

What is the Federal Reserve's long-term inflation goal?

• 3%

• 4%

• 5%

• 2%

What might the Federal Reserve do if inflation stabilizes at 3.5%?

• Lower interest rates

• Maintain higher interest rates for longer

• Stop monitoring inflation

• Increase unemployment benefits

What new statistic has the Fed introduced to analyze inflation?

• Consumer Spending Rate

• Services Act shelter

• Employment Index

• Core CPI

What is the current unemployment rate mentioned in the discussion?

• 3.5%

• 4.5%

• 2.5%

• 5.0%

What could a significant rise in unemployment indicate according to the discussion?

• A soft landing

• A bigger than average recession

• Stable economic growth

• Decreased inflation