Powell Says Fed Is Not Looking at a Higher Inflation Target

The transcript discusses the Federal Reserve's dual mandate, which includes promoting maximum employment, stable prices, and moderate long-term interest rates. It highlights a common oversight of the third goal. Recent news suggests the Fed might consider a higher inflation target than the current 2%, raising concerns about potential hasty policy changes. However, it is clarified that the Fed is not pursuing a higher target but aims to achieve the existing symmetric inflation target more credibly.

What are the three goals included in the Federal Reserve's dual mandate?

• Moderate employment, stable prices, and high interest rates

• Stable prices, high employment, and short-term interest rates

• Maximum employment, high inflation, and low interest rates

• Maximum employment, stable prices, and moderate long-term interest rates

What recent consideration by the Federal Reserve has raised concerns?

• Increasing the inflation target

• Lowering the employment target

• Reducing interest rates

• Raising the employment rate

What is the current inflation target adopted by the Federal Reserve?

• 1%

• 2%

• 3%

• 4%

What is the Federal Reserve's stance on changing the inflation target?

• They are not looking at a higher target

• They are undecided about the target

• They are considering a higher target

• They have already increased the target

What is the purpose of maintaining a symmetric inflation target?

• To balance economic growth

• To ensure high inflation

• To promote maximum employment

• To achieve stable prices