Powell Says 'Time Is Now' for Fed to Grow Balance Sheet, But It's Not QE

What is the primary method the Federal Reserve uses to control the federal funds rate?

• Reducing currency in circulation

• Increasing reserve supply

• Setting administered rates

• Frequent market operations

Why does the Federal Reserve need to increase its balance sheet size over time?

• To conduct large-scale asset purchases

• To decrease currency in circulation

• To maintain a given level of reserves

• To lower the federal funds rate

How does the Federal Reserve differentiate between balance sheet growth for reserve management and large-scale asset purchases?

• By the impact on monetary policy

• By the type of securities purchased

• By the duration of the purchases

• By the amount of reserves added

What are the current conditions of the labor market according to the Federal Reserve?

• High unemployment and low job gains

• Strong labor market with solid job gains

• Decreasing labor force participation

• Stagnant wages across all sectors

What global factors pose risks to the Federal Reserve's favorable economic outlook?

• Rising inflation rates

• Increased domestic spending

• Global trade uncertainties and Brexit

• Stable global economic growth