Fed's Clarida Downplays Significance of Rising Inflation

The transcript discusses the recent increase in inflation and its expected rise above the 2% long-term goal due to transitory factors and supply bottlenecks. It outlines a baseline outlook where these price increases are temporary, predicting inflation to stabilize around the 2% target in 2022 and 2023. This outlook aligns with the new economic framework adopted in 2020.

What is meant by 'transitory effects' in the context of inflation?

How does the recent inflation trend relate to the framework adopted in August 2020?