Fed Is Running the Risk of Falling Behind the Curve: Mishkin

The transcript discusses concerns about a large economic stimulus package amid a recovering economy with low unemployment. It highlights the K-shaped recession, where some groups are hit harder than others, while average Americans have increased savings and spending potential. The Federal Reserve's focus on employment over inflation raises concerns about potential economic overheating, drawing parallels to past fiscal expansions.

What potential risks are associated with the Federal Reserve's approach to inflation and employment?

In what ways might the current economic stimulus impact consumer behavior and spending?