Fed’s Kaplan: Not Ruling Out U.S. Slipping Back Into Recession

The transcript discusses the economic outlook for 2021, highlighting potential GDP growth of 3.5% or more, contingent on a successful COVID-19 vaccine rollout. However, the resurgence of COVID-19 poses risks, potentially leading to negative growth and a temporary recession. The Federal Reserve's response, including bond buying and support programs, is considered crucial. The focus remains on overcoming the immediate challenges posed by the pandemic, with better economic conditions expected in the latter half of 2021.

What is the main reason for the potential negative growth discussed in the first section?

• Stable economic conditions

• Resurgence affecting mobility and healthcare

• Increased consumer spending

• Improved healthcare capacity

What is one of the critical actions mentioned in the second section to support the economy?

• Continuing public market backstop programs

• Increasing interest rates

• Decreasing public spending

• Reducing bond buying

What is the expected GDP growth rate for 2021 mentioned in the third section?

• 1%

• 2%

• 5%

• 3.5% or greater

According to the third section, what is the first priority once a vaccine is available?

• Increasing economic restrictions

• Immunizing the general public

• Immunizing healthcare workers

• Stopping all social distancing measures

What is the expected timeline for broad dissemination of the vaccine as discussed in the third section?

• By the end of 2020

• By March or April

• By the end of 2021

• By the beginning of 2022