Fmr. Fed President Broaddus Says FOMC's View on Inflation Has Changed

Fmr. Fed President Broaddus Says FOMC's View on Inflation Has Changed

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Business, Social Studies

University

Hard

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The transcript discusses the Federal Reserve's shift to a more dovish stance, focusing on the risks of lower inflation. It analyzes the Fed's dot plot, indicating a less likely rate increase and potential for a rate cut if negative economic signals arise. The global economic slowdown, particularly in Europe and China, is considered in Fed policy. The discussion also covers potential risks to the US economy, such as weak consumer spending and housing. Criticism of the Fed's approach is addressed, emphasizing their balanced view on economic risks.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the recent shift in the Federal Reserve's focus regarding inflation?

From downside risks to upside risks

From balanced risks to downside risks

From interest rates to employment

From inflation control to economic growth

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the current dot plot suggest about the Fed's interest rate actions this year?

No changes in interest rates

An increase in inflation rates

A high likelihood of rate increases

A guaranteed rate cut

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which global regions are mentioned as having slowed down, affecting Fed policy?

Africa and South America

Europe and China

Australia and India

Middle East and Russia

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could trigger a rate cut by the Fed this year?

Increased consumer spending

Sustained weakening in job numbers

A strong job market

Higher inflation expectations

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is considered a major downside risk to the US economy?

Rising oil prices

Increased government spending

Strong housing market

Weak consumer sentiment

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the Fed view the current state of the US economy?

In a state of deflation

In a state of hyperinflation

In a good place

In a recession

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What criticism is addressed regarding the Fed's current approach?

It is too focused on exports

It is too focused on employment

It is too complacent

It is too aggressive