Yellen Says Inflation May Still Hit 2%

The transcript discusses the end of a period of dollar appreciation and its effects on import prices, which are now rising modestly. It highlights that the global economy is not the main cause of low inflation, pointing to transitory factors like changes in data plans and drug prices. The speaker emphasizes the dual-sided risk of inflation, considering both low inflation readings and a tight labor market. Despite low inflation, a gradual path of rate increases is deemed prudent, with a focus on monitoring inflation closely and adjusting monetary policy as needed.

What was one of the transitory factors affecting inflation mentioned in the video?

• Increase in food prices

• Increase in oil prices

• Changes in cell phone data plans

• Rise in housing costs

How is the labor market described in relation to inflation?

• Unpredictable and volatile

• Tight and strengthening

• Stable with no changes

• Weak and declining

What might happen as economic slack diminishes?

• Decrease in import prices

• Increase in unemployment

• Pressure on wages and prices

• Stability in inflation rates

What is the current stance on the path of rate increases?

• Immediate and aggressive

• Rapid and unplanned

• Gradual and cautious

• Non-existent

How is monetary policy described in terms of its adaptability?

• Fixed and permanent

• Rigid and unchangeable

• Unpredictable and erratic

• Flexible and adaptable