Powell Says Fed’s Inflation Goal May Be More Than 3 Years Away

The video discusses the goal of maintaining an average inflation rate of 2% over time to anchor inflation expectations. It highlights the commitment to using available tools to achieve this target, despite global disinflationary pressures. The arbitrary three-year timeframe for achieving this goal is acknowledged, with updates provided quarterly.

Why is it important to maintain inflation expectations at 2%?

• To increase consumer spending

• To decrease interest rates

• To ensure prices rise rapidly

• To prevent inflation from falling below 2%

What is the significance of the three-year timeframe mentioned in the video?

• It is the period for reviewing monetary policies

• It represents the time needed for economic recovery

• It is an arbitrary timeframe chosen for assessment

• It is a fixed deadline for achieving the inflation target

What global economic condition is mentioned as a challenge to achieving the inflation target?

• Deflationary pressures

• High unemployment rates

• Increasing trade deficits

• Rising commodity prices

What is the belief regarding the 2% inflation target despite the challenges?

• It will be achieved within a year

• It is impossible to achieve

• It can be achieved with commitment

• It is not a priority for central banks

How often is the assessment of the inflation target updated?

• Annually

• Biannually

• Quarterly

• Monthly