Part 2/17:
One of the primary topics revolves around inflation and its multifaceted nature. Lynn emphasizes that inflation is often measured on a year-over-year basis, which can be misleading due to "base effects." For example, the inflation metrics from April to June last year showed artificially low readings during initial pandemic shutdowns. Comparing this period to the same months this year can result in overstated inflation numbers, sometimes exceeding 4%, mainly because the previous year's lows skew the comparison.