Pantheon's Shepherdson: U.S. Doesn't Need Stimulus

The transcript discusses the current state of the US economy, focusing on the implications of Donald Trump's election and the potential shift to a more expansionary fiscal policy. It examines the risks of running a high-pressure economy, including inflation overshoot and market reactions. The role of the Federal Reserve and the possibility of multiple interest rate hikes in 2017 are also explored, considering the impact of potential stimulus measures on an already tight labor market.

Analyze the challenges of achieving price stability while pursuing a higher inflation target.

What are the implications of the Fed's potential actions in response to the anticipated stimulus?