Fed's Fischer Warns of 'Perverse Effect' of Rate Cuts

The video discusses economic growth rates, the compounding effect, and policies to enhance growth. It highlights the Federal Reserve's role and the political influence on economic decisions. The impact of demographics and capital investment on interest rates is examined, along with the challenges of low interest rates and economic slack. The potential move towards negative interest rates and the limited tools available to the Federal Reserve are also explored.

What is the compounding effect mentioned in the text, and how does it relate to economic growth?

What policies are suggested to raise the growth rate according to the speaker?

What is the significance of the vacancies on the Federal Reserve Board of Governors mentioned in the text?

How does political uncertainty affect business spending as discussed in the text?

What concerns does the Federal Reserve have regarding negative interest rates?