What Could Make the Fed Cut Rates?

The video discusses the Federal Reserve's approach to interest rate changes, highlighting their readiness to adjust rates based on economic conditions. It explores the concept of an asymmetric reaction function, where the Fed may be more cautious with rate hikes due to limited room for cuts. The importance of balancing monetary policy to avoid economic instability is emphasized, considering factors like inflation and financial market dynamics.

What potential risks does the speaker mention regarding inflation and financial market access?

In what way does the speaker suggest the Federal Reserve should balance its approach to interest rate changes?