Buiter Says Powell Has 'No Reasonable Option' Except to Raise Rates

The video discusses the current economic conditions, focusing on the US and global economies. It highlights the slowdown in the US, the Federal Reserve's interest rate policies, and the inflation outlook. The discussion includes the potential for future rate hikes and the debate on whether inflation should overshoot targets. The video concludes with insights into the economic outlook and policy implications.

What is the current economic condition in the US according to the transcript?

• The US is in a recession.

• The US economy is growing rapidly.

• The US is experiencing a slowdown but not a recession.

• The US is unaffected by global economic conditions.

What is the expected action of the Federal Reserve regarding interest rates in 2019?

• A complete halt on rate hikes.

• Two more rate hikes.

• A decrease in interest rates.

• No changes in interest rates.

Why is there an expectation of upward pressure on domestically generated inflation?

• Due to a global economic boom.

• Because of a decrease in consumer spending.

• Because of low potential output growth compared to actual growth.

• Due to high unemployment rates.

What is the argument for taking a 'small piava pause' in rate hikes?

• To immediately lower inflation.

• To reassess economic data before making further decisions.

• To increase consumer spending.

• To align with global economic policies.

What is the stance on overshooting inflation targets according to the transcript?

• It is necessary to overshoot to correct past undershooting.

• Overshooting is invalid as it misguides inflation expectations.

• Overshooting is the primary goal of the Federal Reserve.

• Overshooting is irrelevant to current economic conditions.