Powell knows it doesn't matter what he says now, because his job is to update his own advice every six weeks. :P
How do they come up with the 2% inflation ( LT-mean 3.28% ), and 4% unemployment ( LT-mean 5.68% ), numbers anyway? I'm really curious about the rationale.
Best guess is that the job involves some iterative guessing about how deflating the equity valuations would shock the unemployment number, round and round. The arbitrary targets are meaningless.
As productivity increases, unemployment should go up, AI whatnot. If wealth is distributed more evenly, unemployment is not intrinsically a problem. Inequality of wealth distribution seems to be the core issue, but that's not explicit in the mandate. But he would know all this, and have to work with it.
Strange times. But no stranger than any other.
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