Inflation Will Challenge Fed in 2021: JPMorgan's Michele

The video discusses inflation scenarios for the current year and beyond, highlighting the challenges faced by the Federal Reserve. Key growth drivers include the vaccine rollout, monetary accommodation, and fiscal stimulus. The discussion also touches on the influence of modern monetary theory and its impact on GDP and inflation projections, suggesting a potential growth rate similar to 1984 levels.

What is the expected inflation rate for the current year according to the speaker?

• 1.5%

• 4.5%

• 2.5%

• 3.5%

Which of the following is NOT mentioned as a driver of economic growth?

• Vaccine rollout

• Monetary accommodation

• Government stimulus

• Tax increases

What role does the Federal Reserve play in modern monetary theory according to the speaker?

• It enables government debt issuance

• It reduces inflation

• It restricts government spending

• It increases interest rates

What growth rate does the speaker predict for the year?

• 7%

• 6%

• 5%

• 4%

How does the predicted growth rate affect the output gap?

• It widens the output gap

• It closes the output gap quickly

• It has no effect on the output gap

• It stabilizes the output gap