Yellen Sees Increasingly Broad-Based Economic Expansion

The video discusses the current economic outlook, highlighting gradual economic expansion and job market growth. It addresses financial sector vulnerabilities, noting that while asset valuations are high, the banking system remains stable. Inflation has been below the Federal Open Market Committee's 2% target, with recent low readings attributed to transitory factors. The video also explores challenges in GDP growth, citing the retirement of baby boomers and sluggish productivity as key factors. To boost growth, it suggests policies to encourage business investment, improve infrastructure, enhance education, and support innovation.

What is expected to support faster growth in wages and incomes?

• Gradual adjustments in monetary policy

• Increased vulnerabilities in the financial sector

• A decrease in asset valuations

• A decline in the job market

What has been the trend of inflation in relation to the Federal Open Market Committee's target?

• Unrelated to the 2% target

• Below the 2% target

• Exactly at the 2% target

• Above the 2% target

What are the transitory factors expected to do to inflation over the medium term?

• Stabilize inflation around 2%

• Cause inflation to rise above 3%

• Lower inflation to 1%

• Have no effect on inflation

What is one reason for the slow GDP growth mentioned in the transcript?

• High levels of foreign investment

• Increased labor force participation

• Retirement of baby boomers

• Rapid technological advancements

Which policy measure is suggested to boost economic growth?

• Reducing business investment

• Improving the nation's infrastructure

• Discouraging innovation

• Decreasing the quality of education