Powell Says US Economy Strong, Can Handle Rate Hikes

The video discusses the current state of the US economy, highlighting its strong growth and financial health of households and businesses. It explains the Federal Reserve's monetary policy aimed at moderating growth to control inflation, while maintaining a strong labor market. The challenges posed by global events, such as the war in Ukraine, are also addressed, emphasizing their impact on inflation and economic stability.

What is one of the reasons the US economy is considered strong?

• High inflation rates

• Decreasing job growth

• Low rates of business defaults

• High levels of household debt

What is the primary goal of raising interest rates according to the transcript?

• To decrease unemployment

• To boost economic growth

• To increase household savings

• To allow supply to catch up with demand

How does the US economy plan to achieve a balance between supply and demand?

• By increasing fiscal transfers

• By moderating growth through interest rate hikes

• By reducing household savings

• By increasing default rates

What is a significant challenge mentioned that affects the US economy's ability to reduce inflation?

• Increasing job growth

• Rising interest rates

• Decreasing consumer spending

• The war in Ukraine

What is the target inflation rate the US aims to achieve while maintaining a strong labor market?

• 1%

• 4%

• 2%

• 3%