Mishkin: Tremendous Uncertainty About Trump Fiscal Policy

The video discusses the potential impact of the Trump administration's fiscal policies on the Federal Reserve, highlighting the uncertainty surrounding these policies and their possible effects on inflation and interest rates. It contrasts current inflation concerns with historical inflation issues from the 1960s and 70s, noting that central banks today face challenges in raising inflation rather than controlling it. The discussion emphasizes the unique position of the US in potentially achieving higher inflation through expansionary fiscal policy.

What is one of the main uncertainties regarding the Trump administration's fiscal policy?

• The level of infrastructure spending

• The potential for increased tariffs

• The impact on unemployment rates

• The effect on global trade agreements

How has the Federal Reserve's outlook changed due to potential fiscal policy changes?

• They expect lower interest rates

• They anticipate higher interest rates

• They foresee a decrease in inflation

• They predict a stable economic environment

What is the current challenge for central banks compared to the 1960s?

• Dealing with low inflation

• Controlling unemployment

• Balancing trade deficits

• Managing high inflation

Which regions have struggled with low inflation recently?

• Australia and North America

• Japan and Europe

• Europe and South America

• Asia and Africa

What makes the current US economic environment different from the late 1960s and 1970s?

• Lower inflation concerns

• Higher unemployment rates

• More stable currency values

• Increased trade barriers