Mester: We Need to Raise Rates Even Higher

The video discusses the forecast for the federal funds rate at the end of 2023, highlighting a slightly higher path than the median due to inflation persistence. It emphasizes the need to continue raising interest rates to combat inflation, which remains high despite some positive news. The discussion also covers the reasons for adjusting inflation forecasts, noting that inflation ran higher than expected, necessitating further interest rate adjustments to achieve price stability and a 2% inflation target.

What is the forecast for the federal funds rate at the end of 2023?

Why does the speaker believe it is necessary to continue raising interest rates?

How does the speaker describe the current state of inflation?

What evidence led to the adjustment of the inflation forecast?

What is the target inflation rate that the Fed aims to achieve?