Fed's Harker Says 'Would be Comfortable' With Inflation Moving to 2.5%

The video discusses the current state of inflation, with the CPI at 2.9% and core inflation at 2.3%, the highest in six years. The speaker analyzes the CPI report, noting that goods inflation is flat while services inflation is rising, which is significant for the service-dominated US economy. The discussion also covers potential interest rate changes, with the speaker open to a fourth rate increase if inflation accelerates. The video concludes with a look at market predictions, suggesting the Fed may need to cut rates by 2020, but emphasizes a pragmatic and gradual approach to rate increases.

What is the current Consumer Price Index (CPI) reported percentage?

How does the speaker view the current inflation trend in relation to the 2% target?

What are the two main components of inflation discussed in the text?

How does the speaker describe the relationship between wage increases and service inflation?

What does the speaker suggest about the Federal Reserve's interest rate policy moving forward?

What are the potential implications of inflation accelerating past 2.5%?

What is the significance of service inflation in the context of the U.S. economy?