Holtz-Eakin: U.S. Stimulus Will Not Generate Sustained Price Inflation

The video discusses the current economic situation, focusing on inflation trends, fiscal policy, and the Federal Reserve's role. It highlights the impact of COVID-19 on the service sector, the potential for transitory inflation, and the effects of economic stimulus. The discussion also covers asset price inflation risks and the Fed's dual mandate of employment and price stability. The importance of the Fed's communication strategy in maintaining market stability is emphasized.

How does the speaker differentiate between transitory inflation and sustained inflation?

What role does the Federal Reserve play in managing inflation according to the discussion?

What risks does the speaker associate with focusing solely on the real economy?