Surveillance: Fed & Recession with Lacker (Podcast)
Bloomberg Surveillance
00:00
Fed Funds Rate Minus Expected Nearterm Inflation?
The historical record is clear that they need to get the real federal funds rate at or above zero. If nearterm expectations start falling, then what we have in store is a rendezvous between the fed funds rate and expected inflation. I don't think slowing down the process does them a lot of good. They're going to have to make a judgment about when to stop without knowing whether they've done enough or not.
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