Fed's Yellen Wants Controlled Push of U.S. Economy: Caron

The video discusses the Fed's interest rate forecasts and the implications of their guidance on economic growth. It clarifies the use of terms like 'patience' and 'considerable period' in the Fed's rhetoric, aiming to prevent market panic. The discussion also covers the impact of regulatory measures like Dodd Frank and Basel 3 on systemic leverage, highlighting the improved stability of banks post-crisis.

What was the Fed's long-term interest rate forecast mentioned in the first section?

• 2.5%

• 3.75%

• 4.0%

• 5.0%

What term did the Fed use to provide flexibility in their policy adjustments?

• Aggressive tightening

• Considerable period

• Immediate action

• Patience

Why did the Fed choose to use the term 'patience' in their communication?

• To indicate a decrease in interest rates

• To avoid market panic and provide flexibility

• To signal immediate rate hikes

• To confuse the market

What regulatory changes have contributed to improved financial stability post-crisis?

• Higher interest rates

• Reduced market oversight

• Increased leverage

• Dodd-Frank and Basel III

What has been the impact of regulatory changes on systemic leverage?

• Increased leverage

• No impact

• Reduced leverage

• Increased financial shocks