Fed’s Clarida Calls Coronavirus a ‘Wild Card’ for U.S. Outlook

The transcript discusses the global impact of the coronavirus, focusing on economic monitoring and uncertainty. It highlights the challenges of predicting the virus's effects on global and US economies. The discussion includes the yield curve as an economic indicator and the role of monetary policy in addressing potential economic shocks. The importance of timely action in monetary policy is emphasized, with a focus on the Powell Fed's approach to anticipating and offsetting economic disruptions.

What is the main challenge in predicting the economic impact of the coronavirus outbreak?

• Lack of historical data

• Uncertainty about the virus's spread and duration

• Inaccurate economic models

• Government intervention

What does an inverted yield curve typically indicate?

• Increased consumer spending

• Stable interest rates

• A potential economic downturn

• A strong economic outlook

Why is the recent yield curve inversion not a major concern for the US economy?

• It indicates strong future growth

• It is a result of government policy

• It is a temporary phenomenon

• It reflects global uncertainty rather than US economic conditions

What is the 'art of monetary policy' in the context of the coronavirus outbreak?

• Increasing interest rates

• Balancing timely action with caution

• Reducing government spending

• Predicting future economic trends

How has the Powell Fed indicated it can respond to economic shocks?

• By increasing taxes

• By acting in anticipation to offset shocks

• By waiting for clear data

• By reducing public spending