Daly Says 'Couple More' Fed Rate Hikes Are Likely Needed

The video discusses the surprising momentum of the economy, contrasting it with the FOMC's projections for slower growth, higher unemployment, and reduced inflation. Despite persistent high inflation, the need to raise rates is emphasized to align demand with supply. Banking stresses in March are noted as potential credit shocks that could restrain the economy. The speaker supports slowing the pace of rate hikes while acknowledging the need for further increases to achieve a sustainable 2% inflation path. The importance of being data-dependent in policy-making is highlighted.

What notable economic projections were made by the FOMC in December?

How has inflation been characterized in the recent data?

What actions are suggested to address the current economic situation?

What risks are associated with the banking stresses mentioned?

What is the significance of being data dependent in making economic policy?