Powell Says Fed Is Not Looking at a Higher Inflation Target

The transcript discusses the Federal Reserve's dual mandate, which includes promoting maximum employment, stable prices, and moderate long-term interest rates. It highlights a common oversight of the third goal. Recent news suggests the Fed might consider a higher inflation target than the current 2%, raising concerns about potential hasty policy changes. However, it is clarified that the Fed is not pursuing a higher target but aims to achieve the existing symmetric inflation target more credibly.

Why might the term 'dual mandate' be considered misleading according to the speaker?

What are the three goals that the Federal Reserve is mandated to promote?

What is the current inflation target that the Federal Reserve has adopted?

What concerns does the speaker express regarding the Federal Reserve's approach to inflation?

How does the speaker feel about the possibility of a higher inflation target?