Powell Says Fed Policy Hasn't Been as Accommodative as Thought

The video discusses the evolving relationship between unemployment and inflation, noting that historical correlations have weakened over time. It highlights the impact of global economic conditions, interest rates, and monetary policy on these dynamics. The speaker suggests that while low unemployment can lead to higher wages and inflation, the connection is currently weak.

How did the relationship between unemployment and inflation change over the last 150 years?

• It has become stronger.

• It has weakened.

• It has remained constant.

• It has disappeared completely.

What was the nature of the economy 20 years ago compared to today?

• It was less complex than today.

• It was more similar to today's economy.

• It was vastly different in many ways.

• It was exactly the same as today.

What is the current understanding of the neutral interest rate?

• It has not changed.

• It is higher than previously thought.

• It is unpredictable.

• It is lower than previously thought.

How has the natural rate of unemployment changed according to recent findings?

• It is higher than expected.

• It is lower than expected.

• It has remained the same.

• It is no longer relevant.

What is the current connection between low unemployment and inflation?

• It is non-existent.

• It is quite small.

• It is moderate.

• It is very strong.