Powell Warns Recent Gains May Transition to Economic 'Slog'

The FOMC's recent projections indicate a solid economic recovery, with unemployment expected to decline to 4% and inflation reaching 2% by the end of 2023. However, the outlook is uncertain due to the ongoing impact of the virus. Initial rapid gains from reopening may slow, leading to a prolonged recovery as some sectors continue to face challenges. Economic improvement has moderated since May and June, with notable increases in permanent job losses and recent layoffs.

What are the FOMC's projections for unemployment by the end of 2023?

• 4%

• 5%

• 6%

• 3%

What is the expected inflation rate by the end of 2023 according to the FOMC?

• 1%

• 2%

• 3%

• 4%

What factor contributes to the uncertainty of the economic outlook?

• Global trade agreements

• Interest rate changes

• Control of the virus spread

• Technological advancements

What has been the trend in economic improvement since May and June?

• It has accelerated

• It has remained constant

• It has reversed

• It has moderated

What is a notable concern in the current economic recovery?

• Reduction in government debt

• Rise in housing prices

• Increase in permanent job loss

• Decrease in consumer spending