U.S. July Core CPI Shows Inflation Is Subduded

The video discusses the current state of inflation, highlighting the stabilization in core CPI and the Fed's focus on the services component. It explains the Fed's narrative that inflation will rise towards 2% and the challenges they face in achieving this target in the coming years, especially with muted inflation numbers.

What aspect of the economy is the Federal Reserve most likely to focus on in the coming weeks?

• Retail sales

• Manufacturing growth

• Services component

• Agricultural output

What is the Federal Reserve's expected inflation rate target by the end of the year?

• 2.0%

• 1.7%

• 2.5%

• 1.5%

What is the Federal Reserve's long-term inflation target?

• 2.0%

• 1.5%

• 2.5%

• 3.0%

What challenge does the Federal Reserve anticipate in achieving their inflation target in 2018-2019?

• Rising unemployment

• Increasing interest rates

• Decreasing GDP

• Muted inflation numbers

Why might it be difficult for the Federal Reserve to reach their 2% inflation target?

• High consumer spending

• Muted inflation numbers

• Strong economic growth

• Increased government spending