00:00We're definitely having a conversation about higher interest rates now that we wouldn't have expected to have six months ago.
00:05And I think a lot of people, whether in the White House or in the broader economy, would say,
00:08hang on, what is the Fed doing, thinking about raising interest rates in an environment where it can't affect the
00:17global energy price,
00:18that's the thing pushing up inflation, and it definitely can't affect the rollout of AI because that seems to be
00:24just an unstoppable force.
00:25So why raise interest rates?
00:27So our mandate is price stability and maximum employment.
00:31And right now we're above target on inflation.
00:34And so the possibility or probability that we might consider an interest rate increase in the future, I think, has
00:40to be greater than zero.
00:43You know, the economy has been robust.
00:45GDP growth has been at or around potential.
00:47The labor market is right around, in terms of unemployment, right around its natural rate, around 4.3, 4.4.
00:55And so we're missing on one side of the mandate.
00:59Inflation expectations are drifting higher to some degree.
01:02And we're not missing on the other side of the mandate.
01:06So you have to take all the factors.
01:09And, you know, we have a statutory responsibility to hit both sides of the mandate.
01:14So when it's Anyway to find out your birthday.
Comments