Rosengren Sees 2018 Underlying Inflation Close to 2%

The video discusses the current state of monetary policy, focusing on the justification for recent decisions and future expectations. It highlights the low unemployment rate and inflation below the 2% target, with projections indicating a rise to 2% next year. The importance of a sustainable recovery is emphasized, avoiding rapid increases in wages, prices, or asset values. Past forecasts and their implications are reviewed, with a focus on core inflation to understand underlying trends. Temporary factors like hurricanes and oil price changes are considered in inflation analysis.

What is the current unemployment rate mentioned in the video, and how is it described?

• 5.0%, described as low

• 5.0%, described as high

• 4.2%, described as low

• 4.2%, described as high

What is the expected inflation rate for next year according to the video?

• 2.5%

• 2%

• 1.5%

• 1%

What temporary factor affected inflation numbers in the past, as discussed in the video?

• Decrease in housing prices

• Increase in oil prices

• Change in wireless pricing

• Natural disasters

Why does the video emphasize focusing on core inflation rather than total inflation?

• Core inflation includes all price changes

• Core inflation excludes volatile items like oil

• Total inflation is more stable

• Total inflation is easier to predict

How do hurricanes temporarily affect inflation, according to the video?

• By decreasing demand for goods

• By increasing oil prices and housing supply costs

• By reducing unemployment rates

• By stabilizing the economy