Powell Says Fed Could Start Tapering in 2021

The transcript discusses the economic support measures and changes in monetary policy to achieve full recovery. It highlights the progress made in asset purchases and employment goals, while addressing the challenges posed by the Delta variant. The document outlines future plans for reducing asset purchases and clarifies that these actions do not signal immediate interest rate changes. The focus remains on achieving maximum employment and a sustainable 2% inflation rate.

What is the primary goal of continuing asset purchases according to the first section?

• To reduce national debt

• To achieve maximum employment and price stability

• To increase government revenue

• To support international trade

What factor is mentioned as a challenge to economic progress in the second section?

• Technological disruptions

• Trade wars

• The Delta variant

• Rising oil prices

What is the anticipated action if the economy evolves as expected, according to the second section?

• Increase in interest rates

• Reduction in asset purchases

• Expansion of government spending

• Introduction of new taxes

What condition must be met before changing the federal funds rate, as discussed in the third section?

• Maximum employment must be achieved

• The stock market must stabilize

• A new government must be elected

• Inflation must reach 3%

What is the target inflation rate mentioned in the third section?

• 2%

• 1%

• 4%

• 3%