Grant Thornton's Swonk Sees Acceleration in Wages

The transcript discusses Janet Yellen's significant speech at the Economic Club of New York, focusing on labor market slack and its impact on inflation. It highlights the challenges in understanding inflation dynamics in a nearly fully employed economy. The discussion also covers historical economic changes, such as the 1990s boom, and the current lack of wage pressures and productivity growth. Yellen's career achievements, including her adaptability and non-ideological approach, are praised, while her relationship with Congress is noted as an area for improvement.

What was a key point in Janet Yellen's speech regarding labor market slack?

• It has no effect on inflation.

• It always leads to deflation.

• It increases inflation significantly.

• It exerts less drag on inflation as it diminishes.

How did falling computer prices in the 1990s affect the economy?

• They caused a recession.

• They helped keep inflation in check.

• They led to increased unemployment.

• They had no impact on productivity.

What is a current issue with wage pressures according to the transcript?

• Wage pressures are causing inflation.

• Wage pressures are too high.

• There is a lack of wage pressures.

• Wage pressures are decreasing productivity.

What was one of Janet Yellen's significant achievements during her time at the Federal Reserve?

• She avoided any interaction with Congress.

• She increased the money supply without any issues.

• She was able to adapt and rethink economic policies.

• She maintained a strict adherence to old economic rules.

What was a challenge Yellen faced in her relationship with Congress?

• She ignored Congress completely.

• She was overly dependent on Congress for decisions.

• She had too strong relations with Congress.

• She could have pushed for stronger relations with Congress.