Fed's Brainard Says Economic Risks Are Tilted to Downside

The transcript discusses the economic recovery, highlighting improvements in employment and inflation trends. It notes the strong rebound in the housing sector and consumer spending, supported by low mortgage rates and fiscal measures. However, it warns of the ongoing uncertainty due to COVID-19, which poses risks to businesses and employment. The importance of fiscal support is emphasized to mitigate these risks. The transcript also outlines the need for a shift in monetary policy to accommodate future economic challenges, guided by new committee goals to achieve stable employment and inflation targets.

What factors have contributed to the strong rebound in the housing sector?

• Decreased consumer spending

• Low mortgage rates

• High mortgage rates

• Increased unemployment

What is a significant risk if COVID-19 related uncertainties persist?

• Stronger fiscal support

• Higher employment rates

• Increased inflation

• Permanent business closures

Why is fiscal support considered essential during the COVID-19 crisis?

• To support families and businesses

• To reduce government spending

• To stabilize the housing market

• To increase inflation rates

What shift in monetary policy is emphasized for the coming months?

• From stabilization to accommodation

• From accommodation to stabilization

• From fiscal support to monetary tightening

• From inflation control to employment focus

What is the target average inflation rate mentioned for future monetary policy?

• 1%

• 4%

• 2%

• 3%