Fed's Yellen Sees Uncertainty Around 2% Inflation Outlook

The video discusses the impact of low oil prices, dollar movement, and global economic factors on inflation and unemployment. It highlights the challenges in achieving the FOMC's 2% inflation target due to global competition and technological innovation. The forecast suggests inflation will rise, but uncertainties remain. The sustainable unemployment rate is now estimated at just over 4.5%, lower than past estimates, due to increased global competition and restrained labor bargaining power. A tighter labor market is needed to achieve 2% inflation, but it is considered achievable.

What are some factors mentioned that contribute to low inflation?

• High oil prices

• Technological innovation

• Rising labor costs

• Decreased global competition

What is the FOMC's target inflation rate?

• 4%

• 1%

• 2%

• 3%

Why is there uncertainty in the inflation forecast?

• Due to stable oil prices

• Due to consistent technological growth

• Because of unpredictable global trends

• Because of fixed unemployment rates

How have global competition and labor market dynamics affected unemployment rates?

• No change in unemployment rates

• Unemployment rates are unpredictable

• Increased unemployment rates

• Decreased unemployment rates

What is the current estimate for the sustainable unemployment rate in the US?

• Under 4%

• Over 6%

• Exactly 5%

• Just over 4.5%