Fed's Clarida Downplays Significance of Rising Inflation

The transcript discusses the recent increase in inflation and its expected rise above the 2% long-term goal due to transitory factors and supply bottlenecks. It outlines a baseline outlook where these price increases are temporary, predicting inflation to stabilize around the 2% target in 2022 and 2023. This outlook aligns with the new economic framework adopted in 2020.

What is the expected trend for inflation in the coming months according to the first section?

• It will rise above the 2% long-term goal.

• It will remain stable.

• It will decrease significantly.

• It will fall below the 2% long-term goal.

Which of the following is mentioned as a transitory factor affecting inflation?

• Permanent changes in consumer behavior

• Year-over-year price comparisons

• Stable production levels

• Long-term supply chain improvements

What is one of the reasons for supply bottlenecks mentioned in the second section?

• Excessive inventory levels

• Limited production capacity in certain sectors

• Increased consumer demand

• Decreased global trade

According to the final section, when is inflation expected to align with the 2% goal?

• By mid-2023

• In 2024

• In 2022 and 2023

• By the end of 2021

What framework is the expected inflation outcome consistent with?

• The framework from 2019

• The framework adopted in 2018

• The framework adopted in August of 2020

• The framework proposed in 2021