Gross Doesn't See Inflation at 2% Again

The video discusses historical and current inflation rates, highlighting a shift from 1.7% to 4% annually. It explores the challenges of returning to a 2% inflation target, considering factors like deficits and the Federal Reserve's policies. The discussion emphasizes the difficulty of reducing inflation due to high wages and productivity issues, suggesting a realistic target of 3% inflation.

What was the average inflation rate during the previous generation compared to the current rate?

• 1% compared to 3%

• 1.7% compared to 4%

• 2% compared to 5%

• 3% compared to 6%

What is the Federal Reserve's current target for inflation?

• 1%

• 2%

• 4%

• 3%

Which factor is NOT mentioned as influencing the Federal Reserve's inflation target?

• Tax policies

• Labor costs

• Commodity prices

• Interest rates

What wage growth rate is suggested to align with productivity for achieving a 2% inflation target?

• 2%

• 3%

• 4%

• 5%

What is the current wage growth rate mentioned in the transcript?

• 3%

• 4%

• 6%

• 5%