Yellen: Fed Doesn’t Want to Get Behind the Curve

The transcript discusses the economic growth forecast for the year, highlighting expectations of growth exceeding potential, leading to a tightening labor market and a decrease in unemployment rates. Inflation is projected to gradually return to 2%, despite current influences from past energy price declines and dollar appreciation. The committee anticipates these influences will fade, allowing for upward inflation pressure. Consequently, further increases in the federal funds rate are deemed appropriate, while maintaining an accommodative stance. The committee aims to avoid significant inflation overshoot to prevent rapid tightening that could jeopardize employment gains.

What is the committee's stance on the federal funds rate?

What caution does the committee express regarding inflation?