Narayana Kocherlakota on Federal Reserve's Rate Path

The transcript discusses the current state of the labor market, interest rates, and inflation, highlighting the Fed's approach to economic data. It examines the labor force participation rate and the challenges of measuring labor market slack. The conversation also touches on the Fed's policy decisions, financial stability, and the global economic environment, emphasizing the need for a new framework to address these issues effectively.

What was the unemployment rate mentioned in the discussion as surprising given past expectations?

• 4.9%

• 5.5%

• 6.0%

• 3.8%

Which age group is highlighted as having a significant impact on labor market slack?

• 25 to 54

• 18 to 24

• 55 to 64

• 65 and above

What is the zero lower bound in the context of interest rates?

• The maximum interest rate the Fed can set

• The minimum interest rate the Fed can set

• The average interest rate over a decade

• The interest rate at which inflation is zero

What is the main concern when the Fed considers moving interest rates according to the discussion?

• Neutral risks

• Downside risks

• Upside risks

• Balanced risks

What is one of the financial stability risks mentioned that President Rosengren is concerned about?

• Cryptocurrency fluctuations

• Stock market volatility

• Commercial real estate

• Foreign exchange rates

What is the Fed's primary focus when assessing risks according to the discussion?

• Employment and prices

• Global trade

• Technological advancements

• Political stability

What tool is considered too blunt for addressing financial stability risks?

• Fiscal policy

• Regulatory measures

• Monetary policy

• Tax incentives