Yellen Says Inflation May Still Hit 2%

The transcript discusses the end of a period of dollar appreciation and its effects on import prices, which are now rising modestly. It highlights that the global economy is not the main cause of low inflation, pointing to transitory factors like changes in data plans and drug prices. The speaker emphasizes the dual-sided risk of inflation, considering both low inflation readings and a tight labor market. Despite low inflation, a gradual path of rate increases is deemed prudent, with a focus on monitoring inflation closely and adjusting monetary policy as needed.

What unusual changes are mentioned that may affect inflation readings?

What does the speaker mean by '2 sided risk' in relation to inflation?