Mester Says Rate Hikes All Depend on Inflation

The video discusses the current trends in inflation, highlighting evidence that suggests inflation is decreasing. It explains how this trend could influence the pace of rate increases, suggesting that if inflation continues to moderate, rate increases may slow. Conversely, if inflation does not moderate, a faster pace of rate increases might be necessary.

How could the pace of rate increases be affected by inflation trends?

What might be necessary if inflation does not moderate?