Rafael Bostic

I follow directions.

Thanks for coming on my TED Talk.

So I would say it like this.

One, the longer we're not a target, the higher the likelihood that people will stop expecting that we will ever get to target.

And then they'll start making decisions as if inflation is not going to be 2%, but it's going to be 3%.

And that will change the set of investments that make sense.

It'll change the amount of risk-taking that you have to take in the marketplace.

It will put our economy in a,

in a tougher situation, so I worry about that.

And then the second thing is that we've been talking about getting inflation to 2% for a long time, and we said, well, do whatever it takes.

If it looks like we stopped doing whatever it takes, then people might start worrying about our credibility.

Do they have the stick-to-itiveness that we need them to have to have that longer-run potential?

And that's a problem.

The inflation side has been a big concern for me for a long time, and so that's that.

Now you go to the labor market, and there I think it's actually very complicated.

And it's complicated because I do think there are some structural changes happening that are making it difficult for me and anybody really to have a good sense of

what the implications are for where the economy is moving forward.

So I think about AI and technology.

Businesses are less eager to hire.

Labor supply has contracted because we've counted so much on immigration, and now the number of people coming to be available for workers is much lower.