This podcast episode focuses on the economists' debate surrounding inflation and the Federal Reserve's (Fed) role in controlling it. The discussion revolves around two groups: "Team Transitory" believes inflation will decrease naturally, while "Team Persistent" argues that more measures are necessary to bring it down to the Fed's target. The episode also examines the complex relationship between inflation, wage growth, and the labor market, highlighting both the challenges and potential advantages. Additionally, it explores the significance of the Fed's 2% inflation target, emphasizing the need for credibility and avoiding the erosion of inflation expectations.
