Most Important Two Minutes of Yellen's Statement

The video discusses the federal funds rate, noting weak economic growth and business investment. It highlights slowed household spending and labor market improvements, with job gains averaging 80,000 per month. Despite this, wage growth shows signs of picking up. The video anticipates gradual increases in the federal funds rate, remaining below long-term levels due to economic headwinds like global developments and low productivity growth. If these headwinds fade, interest rates may rise to maintain economic stability.

What was the state of economic growth late last year and early this year?

• Relatively weak

• Strong and consistent

• Rapidly increasing

• Unchanged

How did household spending change early in the year despite increases in income?

• It slowed noticeably

• It remained stable

• It increased significantly

• It decreased drastically

What was the average job gain per month in April and May?

• About 50,000

• About 200,000

• About 80,000

• About 150,000

What positive trend was observed in the labor market over the past 12 months?

• Increase in job openings

• Decrease in part-time employment

• Increase in average hourly earnings

• Decrease in unemployment rate

What are some of the headwinds affecting the economy?

• Rapid technological advancements

• Developments abroad and meager productivity growth

• High inflation and strong currency

• Increased government spending