00:00With the economy now in its sixth year of elevated inflation, consumers, businesses and financial
00:06markets may start to build in expectations for higher future inflation. This would be a bad
00:12development. Preventing an inflationary mindset is critical to delivering on our 2% objective.
00:19Increases in inflation expectations that threaten our goal warrant taking decisive action.
00:25For today, it's reasonable to keep rates steady given the uncertainties around the economic outlook.
00:31But if recent trends continue, it may soon be appropriate to act.
00:36Based on the data, I'm more concerned about the growing risks of persistently elevated inflation
00:41than the risk to full employment, and that monetary policy may not be sufficiently restrictive
00:46to bring inflation down to 2%. If we wait for definitive evidence that high inflation
00:52has become embedded in the economy, it may require larger policy adjustments at greater cost.
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