Fed's Harker Says 'Would be Comfortable' With Inflation Moving to 2.5%

The video discusses the current state of inflation, with the CPI at 2.9% and core inflation at 2.3%, the highest in six years. The speaker analyzes the CPI report, noting that goods inflation is flat while services inflation is rising, which is significant for the service-dominated US economy. The discussion also covers potential interest rate changes, with the speaker open to a fourth rate increase if inflation accelerates. The video concludes with a look at market predictions, suggesting the Fed may need to cut rates by 2020, but emphasizes a pragmatic and gradual approach to rate increases.

What is the current year-over-year CPI headline number mentioned in the video?

• 2.3%

• 3.0%

• 2.9%

• 2.5%

Which sector is primarily responsible for the increase in inflation according to the video?

• Agricultural sector

• Energy sector

• Goods sector

• Services sector

What is the main factor driving service inflation according to the video?

• Technology advancements

• Import tariffs

• Labor costs

• Energy prices

What is the Fed's target inflation rate as discussed in the video?

• 1.5%

• 2.5%

• 2%

• 3%

What might prompt the Fed to consider a fourth interest rate increase this year?

• A decrease in unemployment

• Inflation accelerating past 2.5%

• A rise in the stock market

• A drop in GDP growth

What is the significance of the spread between December 2019 and December 2020 euro dollar contracts?

• It predicts a rise in the stock market

• It indicates a potential increase in inflation

• It suggests the Fed might cut rates by 2020

• It shows a decrease in consumer spending

What is the Fed's approach to interest rate increases as discussed in the video?

• Unpredictable and erratic

• Hesitant and delayed

• Pragmatic and prudent

• Rapid and aggressive