Kocherlakota: Fed Lack Right Tools

The video discusses the credibility of the Federal Reserve and its impact on market perceptions, especially in maintaining inflation targets. It covers recent central bank meetings, economic projections, and the long-term outlook for economic recovery. The role of technological progress in enhancing productivity is highlighted, alongside an assessment of current economic performance and market trends.

What is the main concern of market participants regarding the Federal Reserve's ability?

• The Fed's ability to lower interest rates

• The Fed's ability to control the stock market

• The Fed's ability to maintain a 2% inflation rate

• The Fed's ability to increase employment

According to the discussion, how long can it take to recover from a financial crisis?

• 1-2 years

• 3-4 years

• 7-9 years

• 10-12 years

What is considered a fundamental problem with the expectations from the Fed?

• The Fed can control global economic trends

• The Fed cannot turn on a spigot to generate growth and inflation

• The Fed can predict stock market movements

• The Fed can easily generate growth and inflation

What is suggested as a potential solution to economic challenges?

• Increased government spending

• Technological progress

• Higher interest rates

• Reduced taxation

What is the mystery discussed in relation to economic growth?

• The location of productivity gains

• The cause of unemployment

• The impact of interest rates

• The source of inflation