Clarida Says Fed's Independence Is Not at Risk

The transcript discusses the institution's mandate of maximum employment and price stability, emphasizing its independence and accountability. It pays tribute to Martin Feldstein, highlighting his influence on economic policy. The speaker clarifies the distinction between fiscal and monetary policy, stressing that central banks have a narrow focus. The transcript concludes by addressing rumors of demotion, affirming the institution's commitment to its clear mandate and collaborative decision-making process.

What are the primary goals assigned to the central bank by Congress?

• Public welfare and social security

• International trade regulation and currency exchange

• Fiscal policy management and debt reduction

• Maximum employment and price stability

Who was Martin Feldstein, as mentioned in the video?

• A former president of the central bank

• A mentor and influential economist

• A current governor of Michigan

• A famous global investor

What is the central bank's stance on fiscal policy?

• It directly manages fiscal policy

• It considers fiscal policy in its outlook but does not manage it

• It collaborates with the government to set fiscal policy

• It ignores fiscal policy entirely

How does the speaker describe the Federal Reserve's committee?

• As a competitive and individualistic group

• As a collegial and collaborative committee

• As a secretive and exclusive club

• As a disorganized and chaotic team

What is the Federal Reserve's response to rumors of demotion?

• They are seeking legal advice

• They are planning a public statement

• They are focused on their clear mandate and responsibilities

• They are concerned and defensive