Eaton Vance's Taylor: Fed Should Celebrate Low Inflation

The video discusses the path of interest rates and the nature of inflation as a tax on wealth. It highlights factors like Shell technology, GMOs, and globalization that suppress inflation. Despite these factors, inflation remains around 2%, which is seen as positive by the Federal Reserve. The Fed should celebrate this stable inflation rate as it benefits citizens.

What is inflation often compared to in terms of its effect on citizens?

• A tax on wealth

• A boost to savings

• A reduction in debt

• An increase in income

Which of the following is NOT mentioned as a factor that suppresses inflation?

• GMO's affecting food prices

• Shell technology

• Globalization

• Increased consumer spending

How does globalization contribute to inflation rates?

• By increasing local production costs

• By reducing prices through competition

• By limiting technological advancements

• By increasing tariffs on imports

What is the current headline inflation rate mentioned in the video?

• 3.0%

• 1.5%

• 2.0%

• 2.2%

What should the Federal Reserve's attitude be towards the current inflation rate, according to the video?

• Eager to increase the rate

• Celebrating the controlled rate

• Indifferent to the rate

• Concerned about rising inflation