Posen: Trump Can't Do Anything With Labor Market

The video discusses the potential impact of Donald Trump's presidency on employment and the economy, highlighting the challenges faced by central banks in responding to political changes. It compares the dollar's performance under different Republican administrations and examines the Federal Reserve's projections and economic forecasts.

What is the potential downside of focusing on small job numbers in a large economy?

• It leads to increased foreign investment.

• It boosts public confidence in government policies.

• It distracts from the lack of a comprehensive strategy.

• It results in a stronger economy.

Why should central banks avoid preempting political changes?

• It allows them to control inflation more effectively.

• It can make them appear political and lead to incorrect decisions.

• It ensures they are always ahead of economic trends.

• It helps them predict future government policies accurately.

What is the basic rule of thumb for the Federal Reserve when dealing with political changes?

• To focus solely on international economic trends.

• To anticipate and react before policies are announced.

• To wait for concrete policies before making adjustments.

• To always lower interest rates in response to political changes.

What is a common outcome of large fiscal stimulus when the economy does not need it?

• A sustainable economic boom.

• A short-term recovery followed by inflation pressures.

• A stable and strong dollar.

• A decrease in employment rates.

How did the Federal Reserve's projections change in December regarding rate hikes?

• They decreased from three to two rate hikes.

• They increased from two to three rate hikes.

• They remained the same as before.

• They were completely removed from the forecast.