Yellen Says Fed Has Taken Note of Weak Inflation Readings

The video discusses the current state of monetary policy, emphasizing that it is not on a preset course. It highlights the monitoring of inflation developments, noting recent weak readings, particularly in core inflation. Despite this, a strong labor market suggests conditions for inflation to rise. The importance of not overreacting to short-term data fluctuations is stressed, with specific factors like declines in cell service prices affecting recent inflation data. The video concludes with a focus on medium-term policy decisions, emphasizing the need for careful data analysis and policy adjustments to achieve a 2% inflation target.

What factors have contributed to the recent weak readings in inflation?

What is the committee's inflation objective, and how long has inflation been running under this objective?

What does the speaker pledge regarding the policies necessary to achieve the inflation target?

How does the speaker suggest the committee should respond to recent inflation data?

What are some idiosyncratic factors mentioned that have held down inflation in recent months?