Fed Might Be in 'Rate Cutting Business,' Professor Goolsbee Says

The video discusses Jay Powell's perspective on the economy, highlighting the Fed's 2% inflation target. It contrasts the strong consumer sector with weaker manufacturing and trade, raising concerns about global impacts, particularly from China. Potential threats like a China slowdown, trade wars, and coronavirus are examined. The Fed's strategy on rate adjustments in 2020 is also discussed, with a focus on potential rate cuts.

What is the Fed's stance on inflation according to Jay Powell?

• They are worried about inflation exceeding 2%

• They are comfortable with inflation slightly above 2%

• They aim to keep inflation below 1%

• They have no specific inflation target

Which part of the economy is described as strong in the first section?

• Manufacturing

• International trade

• Consumer spending

• GDP growth rate

What is a major concern regarding the global impact on the US economy?

• High unemployment rates

• Weak consumer confidence

• Rising inflation

• Slowdown in China

What could potentially 'freak out' business investment according to the second section?

• A decrease in manufacturing output

• Increased consumer spending

• A significant slowdown in China

• A stable trade relationship with China

What is the Federal Reserve's likely action regarding interest rates?

• Keep rates unchanged

• Cut rates

• Eliminate rates altogether

• Increase rates significantly