Powell Says FOMC Judged That Risks to Outlook Changed Materially

The video discusses a reduction in the federal funds rate to support the US economy amid new risks, particularly the coronavirus outbreak. It highlights the strong fundamentals of the US economy, including low unemployment and solid job gains. The spread of the virus has introduced challenges, affecting global markets and industries reliant on supply chains. In response, monetary policy has been adjusted to provide economic support. The video emphasizes the importance of health professionals in addressing the crisis and outlines the committee's commitment to monitoring developments and using tools to maintain economic stability.

What was the primary reason for the reduction in the federal funds rate?

• To decrease unemployment

• To support the US economy amidst new risks

• To boost exports

• To increase inflation

Which factor has been a key driver of economic growth in the US?

• Government spending

• Corporate taxes

• Household spending

• Foreign investments

What has been one of the effects of the coronavirus outbreak on the global economy?

• Improved global trade relations

• Higher oil prices

• Disruptions in economic activity and financial markets

• Increased agricultural production

Which industries are beginning to see the effects of the coronavirus outbreak?

• Healthcare and pharmaceuticals

• Real estate and construction

• Tourism and travel

• Technology and education

What is the Federal Reserve's approach to supporting the economy during the coronavirus outbreak?

• Increasing interest rates

• Easing monetary policy

• Reducing government spending

• Raising taxes