Fed's Powell Says Policy Is in a Good Place and Likely to Remain Appropriate

Fed's Powell Says Policy Is in a Good Place and Likely to Remain Appropriate

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the current economic outlook, focusing on a strong labor market and inflation near the 2% objective. It highlights changes in interest rate paths due to global growth weaknesses and trade risks. The Federal Reserve has adjusted the federal funds rate multiple times to support the economy. The effects of these monetary policies will be realized over time, and the current stance is deemed appropriate as long as economic data aligns with expectations. Future policy actions will be monitored, and adjustments will be made if necessary, emphasizing that policy is not on a preset course.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What factors have influenced the change in the path of interest rates over the past year?

Increased consumer spending

Strong domestic growth

High inflation rates

Weakness in global growth and trade developments

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much was the federal funds rate reduced in both July and September?

1/2 percentage point

1/4 percentage point

3/4 percentage point

1 percentage point

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current range for the federal funds rate after the recent adjustments?

2.5% to 3%

1.5% to 1.75%

1% to 1.5%

2% to 2.5%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected impact of the policy adjustments on the economy?

Effects realized over time

No impact on the job market

Immediate effects on economic growth

Decrease in inflation immediately

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the stance of monetary policy regarding future developments?

Policy will change only if inflation rises

Policy will remain the same regardless of economic changes

Policy is fixed and unchangeable

Policy is flexible and will respond to new developments