Fed's Powell Says Reaching 'Substantial Progress' a Ways Off

The video discusses the Federal Reserve's policy goals of maximum employment and price stability, reviewing the economic situation in 2021. It highlights strong economic growth due to vaccinations and fiscal policies, but notes supply constraints in industries like motor vehicles. The labor market is improving, with high job openings, but unemployment remains elevated. Inflation has risen, influenced by base effects and supply bottlenecks, but is expected to moderate. The FOMC aims for inflation expectations anchored at 2%. Monetary policy remains supportive, with low federal funds rates and asset purchases, to aid economic recovery.

What are the two main policy goals given to Congress?

• Maximum employment and price stability

• Supply constraints and labor market improvement

• Inflation control and unemployment reduction

• Economic growth and fiscal policy

What has been a significant factor in restraining activity in some industries?

• Strong housing demand

• High unemployment rates

• Supply constraints

• Increased household spending

Which group experienced the largest decline in employment due to the pandemic?

• Workers with higher wages

• Asian Americans

• African Americans and Hispanics

• Middle-income workers

What is temporarily boosting inflation according to the transcript?

• Base effects from last year's price changes

• Strong fiscal support

• Increased labor demand

• High unemployment rates

What is the Federal Reserve's longer-term inflation goal?

• 1%

• 2%

• 4%

• 3%

What action did the FOMC take regarding the federal funds rate at the June meeting?

• Eliminated the rate

• Kept the rate near 0

• Decreased the rate

• Increased the rate

What is the Federal Reserve's commitment regarding asset purchases?

• To maintain them until substantial progress is made

• To stop them by the end of the year

• To decrease them immediately

• To increase them indefinitely