Powell Says Fed Doesn't Want to Declare Victory on Inflation

The video discusses recent trends in inflation, noting that consumer prices have increased by 2% over the past year. The core PCE index, excluding energy and food prices, rose by 1.8%. The video emphasizes the importance of maintaining inflation near a 2% target and discusses factors that can affect inflation, such as oil prices. It also highlights the role of monetary policy in managing inflation expectations.

What was the percentage increase in consumer prices over the 12 months ending in April?

• 3%

• 2.5%

• 2%

• 1.5%

Which index is considered a better indicator of future inflation?

• Producer Price Index

• GDP Deflator

• Core PCE

• CPI

Why did inflation move up recently according to the transcript?

• Drop in last year's low readings

• Decrease in interest rates

• Rise in global demand

• Increase in consumer spending

What is the committee's concern regarding inflation?

• Inflation persistently above or below 2%

• Stagnant economic growth

• Deflationary trends

• Inflation consistently above 3%

How might rising oil prices affect inflation in the short term?

• Have no effect on inflation

• Decrease inflation below 1%

• Stabilize inflation at 2%

• Push inflation somewhat above 2%