Fed's Powell Says New Normal Is Lower Rates, Lower Inflation, Lower Growth

The video discusses the Federal Reserve's role in past recessions, focusing on interest rate cuts and their limitations due to current economic conditions. It analyzes long-term trends in interest rates, influenced by factors like inflation and demographics, and highlights global economic trends. The need for a review of the monetary policy framework is emphasized to adapt to new economic realities. The importance of fiscal policy as a countercyclical tool is also discussed.

What are the main reasons for the current positioning of the Federal Reserve in relation to interest rates?

How have long-term interest rates changed over the past 40 years, and what factors have contributed to this change?

What does the term 'new normal' refer to in the context of interest rates and economic growth?

In what ways might fiscal policy play a role in the effectiveness of monetary policy?

What challenges does the Federal Reserve face when interest rates approach zero?