Fed Is Running Out of Time for a Timely Taper, El-Erian Says

The video discusses the current state of the equity market and the Federal Reserve's tapering options. It highlights the need for a shift in focus from demand to supply-side issues, emphasizing the importance of addressing these problems at both national and global levels. The discussion also covers the potential effects of reducing central bank accommodation, such as controlling inflation and asset prices, and the risks of delaying action. Additionally, the video examines the housing market, questioning the continued liquidity injections and their impact on affordability.

What is the main concern if the Federal Reserve does not act quickly on tapering?

• Increased inflation

• Disruption of the bond market

• Higher unemployment rates

• Decreased consumer spending

What is identified as the primary economic problem in the second section?

• Persistent supply issues

• Excessive government spending

• High unemployment rates

• Deficient aggregate demand

What is the suggested shift in mindset for policymakers?

• From fiscal policy to monetary policy

• From inflation control to unemployment control

• From demand issues to supply issues

• From supply issues to demand issues

What is one potential benefit of reducing central bank accommodation?

• Increased asset prices

• Higher inflation

• Greater economic inequality

• Reduced risk of abrupt economic changes

Why is the continued purchase of mortgages by the central bank questioned?

• It increases unemployment

• It reduces inflation

• It is pricing out Americans

• It supports the housing market