Powell Says Some Transitory Factors May Be Impacting U.S. Inflation

The video discusses inflation trends over a period, noting that inflation was below the 2% target during a long expansion. With low unemployment, inflation rose, fluctuating around 2% due to energy price changes. Recently, overall inflation fell to 1.5%, with core inflation at 1.6%. The video suggests transitory factors may be influencing these changes, but expects inflation to return to 2% with a strong job market and growth.

What was the inflation rate target during the period of economic expansion?

• 1%

• 2%

• 3%

• 4%

Which components are excluded from core inflation?

• Technology and communication

• Housing and transportation

• Food and energy

• Healthcare and education

What was the main reason for the fluctuation in overall inflation around the 2% mark?

• Changes in government policy

• Variations in energy prices

• Shifts in consumer demand

• Alterations in tax rates

What was the overall inflation rate for the 12 months ending in March?

• 2.0%

• 1.8%

• 1.5%

• 1.2%

What is the expected long-term behavior of inflation according to the baseline view?

• Increase to 4%

• Return to 2% and be symmetric

• Fluctuate around 3%

• Remain below 1%