Powell: Trade, Global Economic Concerns Weigh on U.S. Economic Outlook

The Federal Reserve's semiannual monetary policy report to Congress highlights the goals of maximum employment and price stability. The report reviews the current economic situation, noting a healthy labor market but concerns over inflation and global trade tensions. GDP growth was strong in early 2019, driven by exports and inventories, but business investment slowed. Inflation remains below the 2% target, and uncertainties in global economies and policy issues like trade and Brexit pose risks. The FOMC maintained interest rates and is reviewing its monetary policy framework to address long-term challenges such as labor disparities and federal debt.

What are the primary goals of the Federal Reserve's monetary policy?

• Achieving a balanced federal budget

• Increasing exports and reducing imports

• Reducing taxes and increasing government spending

• Maximum employment and price stability

Which factor contributed significantly to GDP growth in the first quarter of 2019?

• Housing investment

• Consumer spending

• Net exports and inventories

• Government spending

What is the Federal Reserve's target for consumer price inflation?

• 1.5%

• 3%

• 2%

• 2.5%

What are some of the unresolved government policy issues mentioned in the report?

• Trade developments and the federal debt ceiling

• Healthcare reform and education policy

• Immigration reform and infrastructure spending

• Environmental regulations and energy policy

What stance did the FOMC take regarding the federal funds rate in the first half of the year?

• They decided to increase the rate

• They eliminated the rate

• They decided to decrease the rate

• They maintained the target rate range

What is the purpose of the Federal Reserve's public review of its monetary policy framework?

• To increase government control over the Federal Reserve

• To improve the committee's current policy framework

• To reduce the number of FOMC meetings

• To eliminate the federal funds rate

What long-term challenge is highlighted as a priority for the U.S. economy?

• Increasing consumer spending

• Reducing the federal debt

• Enhancing trade relations

• Boosting productivity growth