Mishkin: Tremendous Uncertainty About Trump Fiscal Policy

The video discusses the potential impact of the Trump administration's fiscal policies on the Federal Reserve, highlighting the uncertainty surrounding these policies and their possible effects on inflation and interest rates. It contrasts current inflation concerns with historical inflation issues from the 1960s and 70s, noting that central banks today face challenges in raising inflation rather than controlling it. The discussion emphasizes the unique position of the US in potentially achieving higher inflation through expansionary fiscal policy.

What is the significance of expansionary fiscal policy in relation to inflation?

How does the current economic environment differ from that of the late 1960s regarding inflation?