Fed May Raise Inflation Target to 3% in 2022: Ed Yardeni

The video discusses the current inflation situation, drawing parallels to the 1970s, and examines the role of the Federal Reserve in managing inflation. It highlights the impact of labor shortages and the potential for increased automation to address productivity issues. The discussion also covers the possibility of the Fed raising its inflation target and the implications of such a move. The video concludes with an optimistic outlook on productivity improvements and the easing of supply chain disruptions, which could help mitigate inflationary pressures.

What economic event in the 1970s led to a significant rise in commodity prices?

• The dot-com bubble

• The introduction of the Euro

• The closing of the gold window

• The Great Recession

What is one of the main reasons for the current increase in wages?

• A shortage of workers

• A rise in interest rates

• A decrease in global trade

• An increase in oil prices

What might the Federal Reserve do in response to persistent inflation?

• Lower the inflation target to 1%

• Raise the inflation target to 3%

• Eliminate the inflation target

• Maintain the current inflation target

Who is likely to become the new Fed chair according to the discussion?

• Jerome Powell

• Ben Bernanke

• Janet Yellen

• Lael Brainard

What is expected to help offset rising wages in the future?

• A decrease in consumer demand

• Higher interest rates

• Increased government spending

• A comeback in productivity

What technological advancements are companies using to increase productivity?

• Blockchain technology

• Quantum computing

• Virtual reality

• Robotics and artificial intelligence

What demographic change is affecting the labor force growth rate?

• An increase in birth rates

• A rise in college graduates

• The retirement of baby boomers

• An influx of immigrants