Economist Says BOE Seeing Pound-Related Inflation

The video discusses the dynamics of food prices and their impact on inflation in the UK and US. It highlights the complexities of inflation in the US despite a tight labor market and explores the role of central banks in managing inflation and financial stability. The discussion includes insights from Fed officials and examines the potential for delayed inflationary effects and spare capacity in labor markets.

What is the main concern regarding food prices and core inflation in the US?

• Core inflation is decreasing due to food prices.

• Food prices are decreasing but may not affect core inflation.

• Food prices have no impact on inflation.

• Food prices are rising rapidly.

What significant change did Loretta Mester announce regarding the natural rate of unemployment?

• It remained at 5%.

• It decreased to 4 3/4%.

• It increased to 6%.

• It is no longer relevant.

What are central bankers considering due to the lack of inflationary impulse despite low unemployment?

• Increasing interest rates immediately.

• Delaying action to see if inflation rises.

• Ignoring unemployment rates.

• Reducing spare capacity in the economy.

How does the Bank of England plan to manage financial imbalances?

• By tightening monetary policy immediately.

• By relying on the Financial Policy Committee.

• By ignoring consumer credit trends.

• By increasing inflation targets.

What is the role of the Financial Policy Committee in the UK?

• To set interest rates.

• To manage consumer credit and systemic risks.

• To control food prices.

• To determine unemployment rates.