Fed's Bullard: Inflation Is 'Far Too High for Comfort'

The transcript discusses the high inflation rates in 2022 and the need for economic policies to control it. The speaker outlines plans to adjust the Fed funds rate and initiate balance sheet runoff to manage inflation. Market pricing and interest rates are analyzed, comparing pre and post-pandemic levels. The speaker highlights persistent components of inflation, such as the Dallas Fed trim mean, and stresses the importance of reaching a neutral policy stance quickly to assess further actions. The goal is to apply downward pressure on inflation while avoiding market disruptions.

What was the proposed Fed funds rate target by July 1, 2022?

• 125 basis points

• 50 basis points

• 75 basis points

• 100 basis points

How much did the Treasury yield increase from pre-pandemic levels?

• 125 basis points

• 50 basis points

• 75 basis points

• 100 basis points

What is the Dallas Fed trim mean inflation rate mentioned in the transcript?

• 5.0%

• 2.0%

• 3.6%

• 4.0%

Why is it important to reach a neutral monetary policy stance quickly?

• To decrease inflation

• To maintain current inflation levels

• To increase inflation

• To remove pandemic-era accommodations

What is the speaker's suggestion for monetary policy in the third quarter?

• Increase market disruptions

• Maintain current policy

• Go above neutral

• Reduce interest rates