Yellen: Policy Statement Indicates Fed Can Be Patient

Yellen: Policy Statement Indicates Fed Can Be Patient

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The transcript discusses the update in policy guidance due to the winding down of the asset purchase program. The focus has shifted to economic conditions for determining the timing of the first rate increase. Employment is rising, and the US economy is strengthening, although inflation is slightly below the 2% goal. The committee projects this gap to close over time and believes it can be patient in reducing policy accommodation, with no immediate plans to begin normalization in the next few meetings.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did the committee decide to update its guidance?

To decrease employment rates

To focus on past economic events

To increase interest rates immediately

To align with the end of the asset purchase program

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What economic condition is mentioned as improving in the second section?

Increasing asset purchases

Rising inflation

Strengthening US economy

Decreasing employment

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the committee's target inflation rate?

1%

1.5%

2%

2.5%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the committee's stance on reducing policy accommodation?

No reduction planned

Patient approach

Gradual reduction

Immediate reduction

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When does the committee consider it likely to begin the normalization process?

Never

After a few meetings

In the next meeting

Immediately