Fed's Powell Says It Will Take Time to Move Up Inflation

The video discusses the challenges of raising inflation amidst global disinflationary pressures. It explains the adoption of a flexible average inflation targeting framework and the commitment to maintaining accommodative policies until inflation reaches and exceeds 2%. The video also highlights the historical context of long economic expansions due to low inflation and the Federal Reserve's approach to not preemptively raising rates.

What is one of the main challenges in increasing inflation according to the video?

• Lack of global demand

• Rapid economic growth

• High levels of asset purchases

• Significant disinflationary pressures

What framework has been adopted to address inflation concerns?

• Fixed inflation targeting

• Dynamic inflation control

• Flexible average inflation targeting

• Inflation reduction strategy

Why is it expected to take time to achieve the inflation goals?

• Due to low interest rates

• Due to rapid technological advancements

• Because of the underlying inflation dynamics

• Because of high unemployment rates

What has been the result of low inflation in recent decades?

• Long economic expansions

• Short economic expansions

• Increased interest rates

• Frequent economic recessions

What is the policy stance regarding interest rates until inflation goals are met?

• Interest rates will be raised preemptively

• Interest rates will be fixed

• Interest rates will remain low

• Interest rates will be reduced further