FOMC Minutes Preview: Watching the Inflation Target

The video discusses the perceived ineffectiveness of monetary policy, particularly at zero rates, and explores the potential of raising the inflation target. It highlights the challenges faced by central banks, such as the broken transfer mechanism and low borrowing demand, which limit the effectiveness of monetary policy. The discussion also covers the implications of raising the inflation target and the future strategies the Fed might employ during economic downturns, including rate cuts and quantitative easing.

What does the speaker imply about the Fed's ability to raise inflation?

What is the suggested approach for the Fed in the next downturn according to the discussion?