Bostic Sees 'Green Shoot of Hope' in Services Inflation

The video discusses the current state of monetary policy and inflation trends. It highlights the uncertainty around further interest rate hikes and the gradual decline in underlying inflation. The narrowing distribution of price increases in the Consumer Price Index is seen as a positive sign. Additionally, there is cautious optimism about service prices, which have shown signs of slowing down. Overall, the video provides a hopeful outlook on reducing inflation while acknowledging the challenges ahead.

What is the speaker's main concern about continuing to increase the policy interest rate?

• It will increase government debt.

• It might not be effective in reducing inflation.

• It will cause a rise in unemployment.

• It could lead to excessive tightening and harm the economy.

What recent change in inflation reports gives the speaker hope?

• An increase in housing prices.

• A decrease in unemployment rates.

• A narrowing in the distribution of price increases.

• A rise in consumer spending.

What percentage of prices in the Consumer Price Index basket rose by 5% or more in the last month mentioned?

• 60%

• 50%

• Less than 40%

• 80%

What trend is the speaker observing in core non-housing service prices?

• They are increasing rapidly.

• They have remained stable.

• They are decreasing gradually.

• They are fluctuating unpredictably.

What does the speaker mean by 'a green shoot of hope' in the context of service prices?

• A rise in housing prices.

• A potential trend of disinflation.

• An increase in consumer demand.

• A new government policy.