Morgan Stanley's Zentner Sees a Struggle for Core PCE

The video discusses the impact of base effects on inflation in Europe and the US, highlighting the challenges of core inflation due to slow-moving factors and the influence of the dollar. It examines wage inflation's role in Federal Reserve projections, noting the concentration in low-wage sectors. The video also explores employment rates, emphasizing the Fed's focus on wage pressures and potential rate adjustments if unemployment drops below full employment levels.

What factors are currently influencing core inflation in Europe and the United States?

How does the dollar's rise post-presidential election affect core inflation?

What role does wage inflation play in the Federal Reserve's calculations?

What is the significance of the employment cost index in assessing wage pressures?

How does the unemployment rate relate to the Federal Reserve's decisions on interest rates?