Powell Says Fed Won't Raise Rates Preemptively

The transcript discusses the Federal Reserve's core mandate of price stability and maximum employment, emphasizing the need for inclusive economic prosperity. It highlights persistent economic disparities and the importance of focusing on employment as a broad and inclusive goal. The Fed aims to address these issues by not preemptively raising interest rates and waiting for actual evidence of inflation. The transcript also notes the stagnation of real incomes at the lower end and the decline in income mobility in the U.S., stressing the need for broader policies to achieve significant progress.

What is one of the core mandates of the Federal Reserve discussed in the video?

• Reducing taxes

• Increasing government spending

• Promoting international trade

• Price stability and maximum employment

How does the Federal Reserve plan to achieve maximum employment?

• By ignoring ethnic and gender employment disparities

• By raising interest rates preemptively

• By focusing only on headline unemployment numbers

• By considering a broad and inclusive range of employment measures

What is the Federal Reserve's stance on raising interest rates in the new framework?

• Never raise interest rates

• Raise rates based on predictions of inflation

• Wait for actual evidence of inflation before raising rates

• Raise rates preemptively to prevent high employment

What issue is highlighted as a growing realization across the political spectrum?

• The need for more inclusive prosperity

• The benefits of lowering interest rates

• The necessity of increasing exports

• The importance of reducing government debt

What economic trend is mentioned as declining in the United States?

• Interest rates

• Income mobility across spectrums

• Government spending

• International trade