Clarida: Fed Eyeing ‘Hard Numbers’ on Jobs, Prices Before Move

The video discusses the Federal Reserve's approach to monetary policy, emphasizing the balance between art and science. It introduces a new outcome-based framework focusing on maximum employment and price stability. The video outlines conditions for policy changes, such as sustained inflation and employment indicators. It contrasts preemptive and outcome-based policies, highlighting the importance of actual data. The concept of substantial progress is defined as actual, not projected, progress in labor and price metrics.

What are the primary goals of the Federal Reserve's monetary policy as mentioned in the text?

Why is actual inflation important for the Federal Reserve's decision-making process?

What indicators does the Federal Reserve consider when assessing the labor market?

How does the Federal Reserve's approach to monetary policy differ now compared to the past?

What does the term 'substantial progress' refer to in the context of the Federal Reserve's policy?