Yellen Sees Path to Lower Inflation While Sustaining Strong Job Market

The transcript discusses the Federal Reserve's goal of reducing inflation to 2% while maintaining a strong labor market. It highlights the possibility of achieving this without increasing unemployment above 5%. The speaker emphasizes the necessity of an economic slowdown to transition from rapid growth to a stable labor market. The overall objective is to balance inflation control with economic stability.

What is the Federal Reserve's longer-run target for inflation?

• 1%

• 2%

• 5%

• 3%

What is the estimated natural rate of unemployment according to most estimates?

• Around 6%

• Below 5%

• Exactly 5%

• Above 5%

What is Chair Powell's objective regarding inflation and the labor market?

• Focus solely on reducing inflation

• Increase inflation without affecting the labor market

• Ignore the labor market to control inflation

• Reduce inflation while maintaining a strong labor market

Why is the current economic slowdown considered necessary?

• To boost economic demand

• To decrease unemployment rates

• To transition from rapid growth to a stable labor market

• To increase inflation

What is the belief regarding the labor market despite the economic slowdown?

• It will weaken significantly

• It will become unstable

• It will remain strong

• It will collapse