Shepherdson: Fiscal Plan Has 'Unknowable Consequences'

The video discusses the differences between PCE inflation and personal inflation experiences, highlighting the broad nature of PCE metrics, including medical costs and rent equivalents. It explains the role of these metrics in policy-making, particularly in setting inflation targets. The discussion also covers the current accommodative monetary policy, the rise in core and wage inflation, and the potential impact of fiscal stimulus under the Trump administration on the economy, emphasizing the challenges faced by the Federal Reserve in predicting outcomes.

How does the inflation rate discussed differ from everyday experiences of inflation?

What is the significance of the 2% inflation target mentioned in the text?

What role does fiscal stimulus play in the current economic situation as described?

What challenges does the Federal Reserve face in managing inflation according to the text?

What are the implications of the upcoming March meeting for economic policy?