Dudley Says Fed Will Be 'Much Slower' to Tighten

The video discusses the Federal Reserve's approach to monetary policy, focusing on their patience due to uncertainties about full employment and inflation. It highlights the risks of delayed policy tightening and the potential for recession if inflation accelerates. The Fed's commitment to late action is examined, along with the importance of monitoring the labor market to avoid wage-driven inflation.

What are the reasons the Fed is being patient regarding monetary policy?

How does the Fed plan to address inflation expectations?

What factors will the Fed consider to determine if they are wrong about inflation being transitory?

What is the significance of the labor market in the Fed's assessment of inflation?

What concerns does the Fed have regarding wage pressures and price increases?