Fed Is Too Preoccupied With Inflation Expectations, Guggenheim's Minerd Says

The video discusses core inflation as reflected in the Consumer Price Index (CPI) and why it hasn't influenced market-based inflation expectations. It explains the concept of inflation autocorrelation and recency bias, suggesting that past trends of falling inflation have anchored expectations at low levels. The speaker critiques the Federal Reserve's focus on inflation expectations, arguing that the real issue is the volatility of the natural rate of interest, which is influenced by factors like trade wars and macroeconomic policies. This rate is crucial for maintaining the proper pace of economic expansion.

Why does the speaker believe the Fed is preoccupied with inflationary expectations?

What is meant by the term 'natural rate of interest' as described in the text?