Fed's Kaplan Sees 'Muted' GDP With No Government Action

The video discusses economic trends, focusing on employment, wage growth, and the impact of technology on pricing. It explores the Federal Reserve's approach to interest rate changes and the challenges posed by secular trends like demographics and globalization. The prospects for future GDP growth and inflation are also examined, emphasizing a cautious and gradual policy approach.

What is one of the challenges businesses face in passing on cost increases?

• Increased labor market slack

• Technology-enabled disruption

• Higher interest rates

• Decreased consumer demand

What is the Federal Reserve's approach to removing economic accommodation?

• Delayed and cautious

• Immediate and comprehensive

• Gradual and shallow

• Rapid and aggressive

Which of the following is a secular trend affecting the economy?

• Decreasing global trade

• Increasing tax rates

• Aging demographics

• Rising oil prices

What is the potential impact of a high-pressure economy?

• Higher inflation

• Increased unemployment

• Decreased interest rates

• Lower GDP growth

How does the Federal Reserve view the balance of risks in monetary policy?

• They believe they can afford to be patient

• They consider risks to be high

• They think risks are balanced

• They believe risks are minimal

What is one reason the Federal Reserve might remove some accommodation?

• To increase employment

• To address market expectations

• To prevent economic distortions

• To decrease inflation

What is a potential consequence of low interest rates mentioned in the transcript?

• Lower government debt

• Higher consumer spending

• Asset allocation distortions

• Increased savings