Powell Says Racial Inequality Holds Back the Economy

The transcript discusses the Federal Reserve's focus on climate change and inequality, despite these not being part of its traditional mandates. It explains how climate change poses financial risks that banks must manage and highlights persistent economic disparities. The Fed acknowledges its limitations in directly addressing these issues, emphasizing that they are primarily the responsibility of elected officials. The transcript also touches on the visible impact of the pandemic on homelessness, urging the Fed to consider marginalized individuals in its monetary policy decisions.

What is the primary reason the Federal Reserve is concerned with climate change?

• To increase public awareness about climate change

• To create new environmental policies

• To ensure financial institutions manage associated risks

• To directly reduce carbon emissions

How does the Federal Reserve view its goal of maximum employment?

• As unrelated to economic disparities

• As a temporary measure

• As a broad and inclusive goal

• As a narrow and exclusive target

What is the Federal Reserve's stance on being the primary policy organization for climate change and inequality?

• It plans to create new mandates for these issues

• It has no interest in these issues

• It seeks to be the primary organization

• It acknowledges these are issues for elected representatives

What visible impact of the pandemic is mentioned in the transcript?

• Decrease in bank profits

• Higher inflation rates

• Increased stock market volatility

• Rise in homelessness

How does the Federal Reserve plan to consider marginalized groups in its decisions?

• By creating new employment programs

• By directly providing financial aid

• By keeping them in mind during monetary policy decisions

• By ignoring them as they are not part of its mandate