Yellen on the State of the Economy, Inflation

The video discusses the slow economic recovery, highlighting improvements in the labor market, such as reduced unemployment and increased labor force participation. However, challenges remain, including high part-time employment and stagnant wage growth. Despite job creation, output and productivity growth have been sluggish, impacting living standards. Inflation has been below the Fed's target, influenced by oil price drops and dollar depreciation, but is expected to stabilize and rise with labor market improvements.

What factors have contributed to the recent shortfall in inflation?

What is the expectation for inflation in the coming years based on current trends?