Feldstein Says Fed's Been Dragging Feet on Rate Hikes

The video discusses the timing of rate hikes, suggesting that the ideal time was three years ago, but a move is expected in December. The US economy is considered healthy despite stagnant inflation, but asset prices are misaligned with historical norms, posing risks. The discussion highlights concerns about the potential impact of unwinding asset prices on consumer spending and overall economic activity.

When does the speaker believe was the perfect time for a rate hike?

• This December

• Next year

• Three years ago

• Last year

What is the speaker's view on the current state of the US economy?

• Very unhealthy

• In recession

• Moderately healthy

• Very healthy

What is a major concern regarding the economy's fragility?

• Low consumer confidence

• Decreasing GDP

• Misaligned asset prices

• High unemployment rates

Which asset prices are mentioned as being out of line with historical experience?

• Gold and silver prices

• Oil and gas prices

• Equity and bond prices

• Cryptocurrency prices

What potential impact could the unwinding of asset price imbalances have?

• Rise in inflation

• Growth in the housing market

• Decrease in consumer spending

• Increase in exports