Powell Says the Job Is Not Fully Done on Inflation

The transcript discusses the complexities of managing inflation, emphasizing the risks of underestimating inflationary pressures and the need for careful policy measures. It highlights the tools available to address inflation if it decreases faster than expected and analyzes inflation trends across different sectors. The speaker warns against prematurely declaring victory in controlling inflation, stressing the importance of continued vigilance and action.

What is a major concern when managing inflation risks?

• Doing too little and having to address inflation again

• Overtightening and causing economic stagnation

• Ignoring inflation and focusing on other economic issues

• Doing too much and causing deflation

What is the current state of inflation in core services excluding housing?

• It is still running at 4%

• It is decreasing rapidly

• It is stable at 2%

• It has reached a new high

Which sector represents 56% of the core inflation index?

• Manufacturing

• Core services excluding housing

• Agriculture

• Housing services

What is the goal in managing inflation according to the transcript?

• To increase inflation to boost the economy

• To maintain current inflation levels

• To bring inflation down

• To ignore inflation and focus on growth

What needs to happen for the disinflationary process to begin in the third sector?

• Increase in consumer spending

• Factors driving inflation should come into play

• Increase in interest rates

• Reduction in government spending