Fed More Likely to Hike to Prove Independence, Says Kocherlakota

The transcript discusses President Trump's influence on the Federal Reserve and its independence in setting monetary policy. It highlights the Fed's likely continuation of rate hikes to demonstrate autonomy. Chairman Powell's recent testimony is analyzed, noting his business background aids in clear communication. The potential for increased criticism from the Trump administration is also considered.

What are the implications of the Fed's plans for gradually normalizing interest rates as mentioned in the text?

In what ways does the speaker suggest that the Fed should respond to President Trump's comments?