Inflation Pressures to Last About Six Months, Kroszner Says

The video discusses the Federal Reserve's new policy framework, focusing on average inflation targeting. It highlights the Fed's decision to delay action until inflation meets or exceeds targets, despite current high inflation rates. The discussion includes the absence of hawks in the Federal Reserve, the impact of the pandemic on labor market participation, and the role of fiscal and monetary policy in addressing demand and supply imbalances. The video concludes with a focus on inflation expectations and the potential for a cycle of sustained inflation.

What is the new framework that the Fed is implementing regarding inflation targeting?

How does the current Fed policy differ from previous approaches to inflation?

What factors are contributing to the current high inflation rates according to the discussion?

Discuss the role of supply chain disruptions in the current economic situation.

What are the potential consequences if inflation expectations become unanchored?