Powell Says Economic Outlook Favorable, Fed Policy 'Well-Positioned'

The transcript discusses the economic outlook, highlighting a strong job market and moderate growth despite global risks. It covers household spending, weak business investment, and manufacturing decline. The labor market remains robust with low unemployment and rising wages. Inflation is below the 2% target, prompting interest rate adjustments to support the economy. The Federal Reserve's monetary policy aims to sustain growth and maintain price stability. Technical operations are conducted to manage money market pressures.

What are the primary goals of the Federal Reserve as mentioned in the video?

• Promoting global trade and investment

• Increasing interest rates and reducing inflation

• Reducing taxes and increasing exports

• Maximum employment and price stability

Which sector has shown strong performance according to the video?

• Household spending

• Business investment

• Exports

• Manufacturing output

What trend is observed in the labor market?

• Increasing unemployment rates

• Decreasing wages

• Rising participation in the labor force

• Declining job opportunities

What is the Federal Reserve's target inflation rate?

• 1%

• 1.5%

• 2%

• 2.5%

What is a potential risk of persistently low inflation?

• Higher interest rates

• Stronger global trade

• Increased economic growth

• Unhealthy dynamic in inflation expectations

How has the Federal Reserve adjusted its monetary policy in response to economic challenges?

• Increased the target rate for the federal funds rate

• Maintained the target rate for the federal funds rate

• Eliminated the target rate for the federal funds rate

• Reduced the target rate for the federal funds rate

What operations has the Federal Reserve conducted to address money market pressures?

• Conducting term repo operations

• Purchasing corporate bonds

• Reducing government spending

• Increasing tax rates