Rates Have to Go Higher for Longer: Economist Greene

The video discusses global inflation concerns, highlighting unexpected inflation trends in Europe and the US, and China's robust growth. It examines the impact of monetary policy on financial services and the labor market, noting labor hoarding as a potential risk. The discussion covers inflation trends, consumer strength, and challenges in reducing inflation to target levels. It concludes with insights on market mispricing of central bank policies, emphasizing the need for higher and sustained interest rates.

According to the text, why might the transition from 6% inflation to 2% be more challenging than from 10% to 6%?

What does the text suggest about the future of interest rates and their impact on the economy?