Powell Sees 'Conflicting Signals' in a Healthy U.S. Economy

The transcript discusses the expected solid pace of economic activity and a strong job market, despite slower growth compared to 2018. It highlights the impact of declining energy prices on inflation, which is expected to remain close to the FOMC's 2% goal. Current economic conditions are healthy, but there are concerns about market volatility and less supportive financial conditions. Growth has slowed in major foreign economies like China and Europe, with elevated uncertainty due to unresolved policy issues such as Brexit and trade negotiations. The situation will be closely monitored as it evolves.

What is the expected trend for economic activity compared to 2018?

• It is expected to expand faster than in 2018.

• It is expected to remain unchanged.

• It is expected to expand at a solid pace but slower than in 2018.

• It is expected to decline significantly.

How are recent declines in energy prices expected to affect headline inflation?

• They will likely push headline inflation further below the FOMC's 2% goal temporarily.

• They will likely have no effect on headline inflation.

• They will likely stabilize headline inflation at 2%.

• They will likely increase headline inflation above 2%.

What has been observed in financial markets towards the end of the year?

• Financial markets have become more volatile.

• Financial markets have become more stable.

• Financial markets have become less volatile.

• Financial markets have shown no significant change.

Which regions are experiencing a slowdown in growth?

• Australia and South America

• North America and Africa

• Middle East and South Asia

• China and Europe

What are some of the unresolved government policy issues mentioned?

• Climate change and healthcare reform

• Brexit and ongoing trade negotiations

• Cybersecurity and data privacy

• Education reform and immigration policy