Yellen: Inflation to Rise to 2% Over Next 2-3 Years

The transcript discusses the current state of inflation, noting that personal consumption expenditures have been about 1% over the past year, which is below the 2% target. Core inflation, excluding energy and food, is around 1.5%. The committee expects inflation to rise to 2% as temporary factors fade and the labor market strengthens. The stability of long-term inflation expectations is crucial, though financial market measures have declined. The committee will continue to monitor inflation indicators to guide future policy decisions.

How does the committee expect inflation to change over the next two to three years?

What is the significance of longer run inflation expectations according to the text?