I would be uncomfortable raising the federal funds rate if…
“I would be uncomfortable raising the federal funds rate if readings on wage growth, core consumer prices, and other indicators of underlying inflation pressures were to weaken, if market-based measures of inflation compensation were to fall appreciably further, or if survey-based measures were to begin to decline noticeably.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
She would hesitate to raise rates if inflation indicators weaken, market expectations drop, or surveys show decline.
In simple terms: Rate hike only if inflation stays strong.
Raise rates only with strong inflation data.
Themes
Mood
Type
When to use this quote
- central bank decisions
- budget planning
- investment strategy
Key Concepts
Questions to Reflect On
- How would you balance inflation control with economic growth?
- What alternative tools could be used?
If inflation eases, raising rates could harm growth.