Yellen Says Gradual Rate Hikes Likely to Be Appropriate

The video discusses the Federal Reserve's decision to increase the federal funds rate, highlighting the ongoing economic strength and the need for gradual rate hikes to maintain a healthy labor market and stabilize inflation. It explains the concept of the neutral rate, which is currently low, and the expectation for it to rise over time. The video also covers future projections for the federal funds rate and emphasizes the uncertainty in the economic outlook, noting that policy is not predetermined.

What is the significance of the federal funds rate being below its neutral level?

What factors contribute to the uncertainty of the economic outlook mentioned in the text?