Fed's Mester: Rates Need to Move Up 'Somewhat Further'

The video discusses the shift in monetary policy from an accommodative to a restrictive stance, highlighting the effects of this transition on the economy. It explains how the current tightening phase is expected to moderate demand and ease inflation pressures, although reaching the 2% inflation target will take time. The economy shows unexpected strength, but core inflation remains high, necessitating further rate increases and careful monitoring.

What challenges are mentioned regarding reaching the 2% inflation goal?

What does the speaker suggest about the funds rate in the future?