Fed's Mester: Inflation Too High, Jobs in Better Balance

The video discusses the impact of policy actions on moderating demand and addressing economic imbalances. It highlights the current state of the labor market, noting strong conditions despite slowed job growth. Inflation progress is acknowledged, but challenges remain, with the FOMC committed to reducing inflation. Future policy decisions will focus on managing risks and closely monitoring economic developments to ensure alignment with economic outlooks.

What has been the effect of policy actions on the labor market?

• Moderated demand and improved balance

• Increased unemployment rates

• Decreased labor market participation

• Increased job openings

How has the labor market participation rate changed for workers aged 25-54?

• It is above pre-pandemic levels

• It is below pre-pandemic levels

• It remains unchanged

• It has decreased significantly

What is the current status of total PC inflation?

• It has increased significantly

• It has decreased significantly from its peak

• It has not changed

• It remains at its peak

What is the Fed's target inflation rate?

• 1%

• 3%

• 2%

• 4%

What is a key consideration for future policy decisions?

• Increasing interest rates

• Balancing risks of over-tightening and under-tightening

• Reducing unemployment rates

• Increasing inflation rates