Powell: We Have a Resilient Economy on Our Hands

The transcript discusses the unexpected resilience of the US economy, highlighting low jobless claims, strong retail sales, and industrial production. Despite predictions of a recession, the economy is growing above its long-term trend, driven by consumer spending and a strong job market. Inflation is decreasing, leading to higher real wages. The economy may be less affected by interest rates due to fixed-rate mortgages and companies managing debt. However, interest-sensitive sectors like housing and durable goods are impacted, with consumers hesitant to make large purchases. Overall, strong demand persists despite policy efforts to slow growth.

What has been a major driver of the U.S. economy's unexpected growth?

• Decreased exports

• Increased government spending

• Consumer spending and a strong job market

• Higher interest rates

How have decreasing inflation rates affected consumer behavior?

• They have led to decreased spending

• They have caused a rise in unemployment

• They have had no impact on spending

• They have increased real wages, boosting spending

Why might some companies be less affected by rising interest rates?

• They have access to international markets

• They have termed out their debt with long-term bonds

• They rely on short-term loans

• They have decreased their production

Which sector is particularly affected by higher interest rates?

• Agriculture

• Healthcare

• Technology

• Housing and durable goods

What is a common perception among consumers regarding big purchases like cars and houses?

• It is a bad time to buy

• It is a good time to buy

• Prices are expected to fall

• Interest rates are irrelevant