Food Matters More Than Energy to U.S. Economy

The transcript discusses inflation trends, the Federal Reserve's approach to managing inflation, and the potential for an inflation overshoot under Janet Yellen's policy. It compares the economic cycles of the US, Europe, and Japan, highlighting the US's steady growth and potential risks of policy mistakes if inflation overshoots. The discussion also covers the Fed's tolerance for inflation and the impact on labor markets and financial imbalances, concluding with an outlook on future economic growth.

What risks are associated with allowing inflation to rise above 2%?

In what ways might the labor market impact the Fed's inflation strategy?