NAB's Tan Says Impact of Low Inflation Becoming Reality

The video discusses the Federal Reserve's approach to inflation and asset prices. It highlights the Fed's December meeting, the impact of low inflation, and the market's comfort with current inflation levels. The discussion also covers the Fed's stance on high asset prices and the potential for a bubble. The video concludes with considerations for future policy directions, emphasizing the importance of inflation data over asset price inflation.

What are the implications of low inflation on the Federal Reserve's decision-making process?

How does the concept of transitory forces relate to the current inflation situation?

What factors might influence the Federal Reserve's approach to asset price valuations?

In what ways might the upcoming leadership change at the Federal Reserve affect its policies?

Why is it important to consider inflation prints over asset prices in policy decisions?