Fed's Powell Sees Uneven Recovery, Short-Lived Inflation

The transcript discusses the impact of the pandemic on the economy and the Federal Reserve's response to stabilize it. It highlights the swift actions taken by Congress and the Fed to support households, businesses, and healthcare providers. The economic recovery is uneven, with improvements in some sectors but challenges in others. Inflation is expected to rise temporarily, but the Fed aims to maintain stable prices and maximum employment. The Fed's monetary policy remains accommodative, with a focus on achieving long-term goals. The commitment to using all available tools to support the economy is emphasized.

What was the primary focus of Congress's response to the pandemic?

• Promoting international trade

• Reducing healthcare funding

• Providing fiscal support

• Increasing taxes

What is the Federal Reserve's stance on interest rates during the recovery?

• Increase rates significantly

• Double the current rates

• Maintain rates near zero

• Eliminate interest rates

Which sector has fully recovered from the economic downturn?

• Automotive

• Retail

• Housing

• Travel and hospitality

What is the projected unemployment rate by the end of 2023?

• 6.2%

• 5.0%

• 3.5%

• 4.5%

Which group has been most affected by joblessness during the pandemic?

• Tech industry professionals

• Government employees

• Lower-wage workers in the service sector

• High-wage workers

What is the Federal Reserve's target for long-term inflation expectations?

• 3%

• 4%

• 2%

• 1%

What is the Federal Reserve's approach to inflation that exceeds 2% temporarily?

• Implement immediate policy changes

• Consider it a transient effect

• Ignore it completely

• Permanently increase interest rates