Yellen Says Fed Has Taken Note of Weak Inflation Readings

The video discusses the current state of monetary policy, emphasizing that it is not on a preset course. It highlights the monitoring of inflation developments, noting recent weak readings, particularly in core inflation. Despite this, a strong labor market suggests conditions for inflation to rise. The importance of not overreacting to short-term data fluctuations is stressed, with specific factors like declines in cell service prices affecting recent inflation data. The video concludes with a focus on medium-term policy decisions, emphasizing the need for careful data analysis and policy adjustments to achieve a 2% inflation target.

What factors have contributed to the recent weak readings in inflation?

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What is the committee's inflation objective, and how long has inflation been running under this objective?

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What does the speaker pledge regarding the policies necessary to achieve the inflation target?

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How does the speaker suggest the committee should respond to recent inflation data?

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What are some idiosyncratic factors mentioned that have held down inflation in recent months?

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