El-Erian: Jobs Report Makes Fed's 'Trilemma' Even Harder

The transcript discusses the current economic achievements, highlighting job creation, wage growth, and low unemployment rates. It addresses the challenges faced by the Federal Reserve, particularly the trilemma of balancing monetary policy objectives with financial stability. The service sector is identified as a key driver of growth, which complicates the Fed's task due to its insensitivity to interest rates. The Fed faces a dilemma between targeting inflation with high interest rates, risking financial stability, or tolerating higher inflation. The unpredictability of the Fed's decisions is also noted.

What are the two choices the Fed has regarding inflation as mentioned in the text?

Why is it difficult to predict the actions of the Federal Reserve according to the speaker?