Slok: Bullard's Economic View 'Quite Revolutionary'

The video discusses the potential risks of unexpected Federal Reserve rate hikes and explores unconventional views on inflation and full employment. It highlights the challenges in predicting future rate hikes due to foreign and political shocks. The discussion also compares the US economy with Japan's stagnation, noting differences in unemployment rates and wage increases. The video concludes by examining signs of economic recovery and the untimely nature of certain economic comments.

What is a potential risk if the Federal Reserve raises interest rates without informing the markets?

• The stock market will crash.

• Unemployment will drastically increase.

• Inflation will immediately rise.

• A new economic crisis might emerge.

According to the revolutionary viewpoint discussed, what happens when an economy reaches full employment?

• Interest rates will decrease.

• Inflation is expected to rise.

• Inflation is no longer expected.

• The economy will shrink.

What is one reason for the frustration among FOMC members regarding rate hikes?

• The economy is growing too fast.

• Foreign and political shocks make predictions difficult.

• There is too much inflation.

• Interest rates are too low.

How is the U.S. economy compared to Japan's in terms of productivity and growth?

• The U.S. has overcome low productivity issues.

• Both economies are facing low productivity and growth concerns.

• Japan has higher growth than the U.S.

• The U.S. is experiencing high productivity and growth.

What economic sign is observed in certain U.S. states indicating full employment?

• Reduction in interest rates.

• Rise in inflation rates.

• Increase in minimum wages.

• Decrease in unemployment benefits.