Powell Says Progress Toward Fed Goals Will Take 'Some Time'

The transcript discusses the Federal Reserve's response to the COVID-19 pandemic, focusing on monetary policy goals of maximum employment and price stability. It highlights actions taken to support the economy, such as maintaining low interest rates and asset purchases. The economic impact of COVID-19, including job losses and inflation trends, is examined. The Fed's strategy to achieve its goals through interest rate guidance and balance sheet expansion is outlined, emphasizing the importance of fiscal policy and vaccinations for recovery. The Fed reaffirms its commitment to using all tools to support the economy.

What are the two main monetary policy goals given to the Federal Reserve by Congress?

• Maximum employment and price stability

• Economic growth and low taxes

• Stable currency and balanced budget

• High employment and low inflation

Which sector has more than fully recovered from the economic downturn?

• Travel and hospitality

• Manufacturing

• Housing

• Retail

What has been the trend in consumer prices since the spring?

• They have decreased and then leveled out

• They have remained constant

• They have decreased steadily

• They have continuously increased

Which group has been most severely affected by joblessness during the economic downturn?

• Middle-class workers

• High-income earners

• Lower-wage workers in the service sector

• Government employees

What is the Federal Reserve's target for inflation over the long term?

• 1%

• 2%

• 3%

• 4%

What is the Federal Reserve's current target range for the federal funds rate?

• 0 to 0.25%

• 1.5 to 2%

• 0.5 to 1%

• 1 to 1.5%

What is the Federal Reserve's approach to supporting the economy during the recovery?

• Reducing asset purchases

• Increasing interest rates

• Maintaining an accommodative monetary policy

• Decreasing government spending