Purves Says Fed Will Have to Reevaluate 2% Inflation

The video discusses the unexpected economic changes and inflation concerns faced by central banks. It highlights the challenges in using traditional economic models to address inflation, especially with technological advancements affecting labor and resource supply. The Federal Reserve's strategy in managing inflation risks is also examined, considering the potential for inflation breakout and the presence of deflationary forces globally.

In what ways does the speaker believe the Federal Reserve needs to reevaluate its approach to inflation?

What risks does the speaker associate with a potential inflation breakout?