El-Erian: Central Banks Will Change 'Definition' of Transitory

The video discusses the persistence of inflation, arguing that it may last longer than central banks anticipate. It highlights structural changes in supply and demand, labor market challenges, and supply chain disruptions as key factors. The Federal Reserve's perspective on inflation is also examined, with a focus on the potential for a more persistent inflation rate. The video concludes by questioning how households, workers, and markets will react to ongoing inflationary pressures.

What does the speaker mean by 'peak base effects' in the context of inflation?

What are the implications of supply chain disruptions mentioned by the speaker?