Fed's Powell Says Uptick in Inflation This Year Won't Persist

Fed's Powell Says Uptick in Inflation This Year Won't Persist

Assessment

Interactive Video

Business

University

Hard

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The video discusses the impact of base effects on inflation, noting that low readings from the previous year will drop out of calculations, causing a temporary rise. As the economy reopens, there may be a surge in spending and potential bottlenecks, leading to temporary price increases. However, these effects are expected to be neither large nor persistent due to long-standing disinflationary pressures. The commitment to maintaining inflation expectations at 2% is emphasized, with tools available to manage any disruptions.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What causes the temporary rise in inflation at the beginning of the year?

Supply chain disruptions

Increased consumer spending

Base effects from previous low readings

Government policy changes

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might happen as the economy reopens and vaccinations continue?

A reduction in economic activity

A permanent increase in inflation

A decrease in consumer spending

A surge in spending and potential bottlenecks

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected impact of the temporary price increases on long-term inflation?

They will cause a permanent rise in inflation

They will lead to deflation

They will have a large and lasting effect

They will be neither large nor persistent

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the global trend in inflation over the past quarter-century?

Volatile inflation rates

Strong disinflationary pressures

Stable inflation rates

Strong inflationary pressures

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the commitment regarding inflation expectations?

To keep them anchored at 3%

To let them fluctuate with market trends

To maintain them at 2%

To increase them gradually