Questions why the Fed continues to cut rates despite 10-year yields being 50bps higher and the curve steepening since September 2024.
Michael McKee
Jerome Powell
Explains that rising long-term rates are not due to inflation concerns, as breakevens are consistent with 2% inflation. Attributes the move to expectations of higher growth or other developments.
Asks why the Fed prioritizes the stable labor market over inflation, which is the public's top concern.
Michael McKee
Jerome Powell
States the Fed hears public frustration with high costs, largely from past inflation. The dual mandate aims to restore 2% inflation while supporting a strong economy with rising real wages.