• Q: Can disinflation still happen along a relatively painless path for the economy or is some softening in the economy likely needed?
    • A: We're trying to use our tools in a way that keeps the labor market strong. And the economy strong. But also helps bring inflation back down to 2% sustainably. We will bring inflation down to 2% sustainably. We hope we can do it without significant dislocations in the labor market. Or elsewhere.
    • An unexpected weakening in the labor market would get our attention [re cuts] - a couple of tenths of a point higher in the unemployment would probably not do that, will depend on all the facts and circumstances.

FED: Fed Hopes To Bring Inflation To Target Without Significant Labor Market Dislocations

Last updated at:May-01 19:17By: Jack Lewis
  • Q: Can disinflation still happen along a relatively painless path for the economy or is some softening in the economy likely needed?
    • A: We're trying to use our tools in a way that keeps the labor market strong. And the economy strong. But also helps bring inflation back down to 2% sustainably. We will bring inflation down to 2% sustainably. We hope we can do it without significant dislocations in the labor market. Or elsewhere.
    • An unexpected weakening in the labor market would get our attention [re cuts] - a couple of tenths of a point higher in the unemployment would probably not do that, will depend on all the facts and circumstances.

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