00:00Now, certain sectors, like housing and agriculture, are showing strains.
00:04But on balance, I would be hard-pressed to describe broad financial conditions as restrictive.
00:12Real consumer spending has been healthy despite these shocks, increasing more than 2% over the past year.
00:19But on the price stability side of our mandate, the numbers are more concerning.
00:24The Fed's preferred measure of inflation, the one I talked about earlier, the 12-month change in the PCE price
00:30index, stands at 3.7%, with a six-month change a little above 4.
00:38The comparable measures from the CPI index are also elevated, as are core measures both of PCE and CPI inflation.
00:46None of these measures are perfect.
00:49But they all tell a similar story.
00:51Inflation is running above our 2% target.
00:55So the Fed's predominant focus right now should be on prices.
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