Janice Eberly on Fed Policy, US Debt, Inflation

The transcript discusses the challenges of fractured policy in America, focusing on economic growth and productivity. It highlights the Federal Reserve's approach to interest rates and the complexities of risk balancing. The impact of interest rates on the economy, particularly during a downturn, is examined, along with the lack of fiscal stimulus. The discussion also covers the US government's debt maturity structure and its implications. Finally, the market's response to rising issuance and the resulting business costs are analyzed, emphasizing the challenges in fighting inflation.

What is one of the main focuses of the Federal Reserve as discussed in the video?

• Promoting international trade

• Balancing risks while targeting interest rates

• Increasing employment rates

• Reducing taxes

What complicates the Federal Reserve's decision-making process in a weakening economy?

• Stable balance sheets

• Low inflation rates

• High employment rates

• Increased impact of interest rate hikes

What is a significant challenge for fiscal stimulus in the current economic climate?

• Low consumer spending

• High debt and financing costs

• Strong international trade

• Excessive government savings

Why does U.S. government debt tend to have a shorter maturity structure?

• To reduce interest payments

• Due to its special role in the global economy

• To increase foreign investments

• To stabilize the stock market

How do higher interest rates affect American businesses according to the video?

• They reduce the cost of capital

• They make investment more costly

• They increase consumer spending

• They lower inflation