Fed May Raise Inflation Target to 3% in 2022: Ed Yardeni

The video discusses the current inflation situation, drawing parallels to the 1970s, and examines the role of the Federal Reserve in managing inflation. It highlights the impact of labor shortages and the potential for increased automation to address productivity issues. The discussion also covers the possibility of the Fed raising its inflation target and the implications of such a move. The video concludes with an optimistic outlook on productivity improvements and the easing of supply chain disruptions, which could help mitigate inflationary pressures.

What similarities are drawn between the current inflation situation and that of the 1970s?

How did the closure of the gold window affect the dollar and commodity prices?

What factors contributed to the increase in wages during the 1970s?

What is the current perspective on the Fed's approach to inflation?

What role does productivity play in the relationship between wages and prices?

What are the potential outcomes if productivity does not improve?

How do demographic changes impact the labor force and economic growth?