Fed's Bullard: We're determined to get to the right level on rates

• If US unemployment rises to 4.5% that would still be healthy
• Fed is certainly sensitive to global developments and impact on US financial stability
• Inflation will start to come down in 2023 but how fast is uncertain
• Long and variable lags less common now due to Fed transparency
• Other central banks will have to react to Fed's intentions
• Fed is having to raise rates pretty rapidly to get to a minimally-appropriate level in order to tackle inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• US has to get get to the right policy level, after that it can adapt more-normally to incoming data

Abandoning the idea of 'long and variable' lagging impacts on the real economy is a potentially-dangerous mistake.

The thing about reacting 'more normally' is that 14-months from now -- if the Fed follows the path it's laid out -- then we'll have a very weak economy and high rates. Reacting 'more normally' would mean cuts to sub-2%.