Powell Sticks to ‘General Comments’ on Fiscal Policy When Pressed on Aid

The transcript discusses the potential economic rebound and the necessity of additional fiscal policy to support small businesses. It highlights the uncertainty of reopening economies and the importance of gathering information to make informed decisions. The speaker emphasizes the distinction between liquidity and solvency issues, noting that liquidity problems can evolve into solvency problems over time. The effectiveness of current fiscal measures is evaluated, and the need for future readiness is stressed.

What is the main concern regarding small businesses in the current economic climate?

• They are expanding too quickly.

• They might run out of cash soon.

• They are hiring too many employees.

• They are investing too much in technology.

Why is it difficult to predict the outcome of the economic reopening?

• Because it has been done many times before.

• Because it is an unprecedented situation.

• Because the government has clear guidelines.

• Because consumer behavior is predictable.

What is the speaker's stance on discussing specific fiscal policy provisions?

• They think it is unnecessary.

• They believe it is the Fed's role.

• They are reluctant to discuss them.

• They are eager to discuss them.

What are the two main risks mentioned that could cause lasting damage to the economy?

• High consumer confidence and low savings.

• Increased taxes and reduced spending.

• Long-term unemployment and solvency issues.

• High inflation and low interest rates.

What is the difference between liquidity and solvency problems as discussed in the transcript?

• Liquidity problems are easy to solve, solvency problems are impossible to solve.

• Liquidity problems are about long-term assets, solvency problems are about short-term liabilities.

• Liquidity problems are about cash flow, solvency problems are about overall financial health.

• Liquidity problems are permanent, solvency problems are temporary.