Powell Says Fed Will Use Powers Forcefully to Combat Virus Impact

The video addresses the severe economic impact of the COVID-19 pandemic, highlighting the rise in unemployment and the downturn in various sectors. It outlines the Federal Reserve's response, including lowering interest rates and purchasing securities to stabilize financial markets. The video also discusses emergency lending programs and the importance of maintaining credit flow to support recovery efforts.

What is the primary focus of the initial response to the coronavirus outbreak?

• Public health crisis

• Economic recovery

• Technological advancement

• International trade

Which sector experienced a significant impact due to the economic downturn?

• Technology

• Healthcare

• Retail and hospitality

• Agriculture

What action did the Federal Reserve take to support the economy during the crisis?

• Increased taxes

• Lowered interest rates

• Reduced government spending

• Implemented trade tariffs

Why is maintaining the flow of credit important during the economic downturn?

• To increase inflation

• To support technological innovation

• To mitigate economic damage and support recovery

• To reduce government debt

What is the primary purpose of the Federal Reserve's purchase of securities?

• To enhance international trade

• To increase government revenue

• To preserve smooth market functioning

• To reduce unemployment

What role do emergency lending powers play in the Federal Reserve's response?

• They provide grants to businesses

• They offer loans to solvent entities

• They reduce interest rates

• They increase taxes

What is the significance of direct fiscal support during the economic crisis?

• It provides direct aid to mitigate long-term economic damage

• It increases international trade

• It reduces inflation

• It helps in technological advancements