Fed's Powell Sees 'Perfect Storm' in Car Market Passing

The video discusses how monetary policy should not react to temporary inflation caused by supply-demand imbalances, such as those seen in the automotive market due to semiconductor shortages. It emphasizes that these inflationary pressures are expected to be temporary, with prices likely to stabilize as supply issues resolve. The discussion includes current inflation trends, particularly in the automotive sector, and predicts that prices will eventually decline as supply normalizes.

What is the significance of the semiconductor shortage in relation to car prices?

What do forecasters believe about the future price trends of used and new cars?