Fed's Yellen Sees Uncertainty Around 2% Inflation Outlook

The video discusses the impact of low oil prices, dollar movement, and global economic factors on inflation and unemployment. It highlights the challenges in achieving the FOMC's 2% inflation target due to global competition and technological innovation. The forecast suggests inflation will rise, but uncertainties remain. The sustainable unemployment rate is now estimated at just over 4.5%, lower than past estimates, due to increased global competition and restrained labor bargaining power. A tighter labor market is needed to achieve 2% inflation, but it is considered achievable.

What role do low oil prices play in the current economic context discussed in the text?

What are the implications of a tighter labor market on inflation as mentioned in the text?