Fed's Powell: Inflation From Reopening Larger Than Expected

The video discusses the impact of the economic reopening on inflation, highlighting the strong demand and weak supply in certain sectors like used cars and travel. It addresses the challenges of measuring inflation accurately during the pandemic, as traditional statistics may not reflect current consumer spending patterns. The video also explains the importance of understanding inflation data, such as CPI and PCE, and how these metrics are updated to better capture economic changes.

What is the significance of the Personal Consumption Expenditure (PCE) in measuring inflation?

In what ways are consumer spending patterns changing during the economic reopening?