UCLA Prof. Eisfeldt on Fed, Tax Overhaul

The video discusses the current economic landscape, focusing on the potential for rate hikes, the role of central bank support, and the transitory nature of inflation. It explores the implications of tapering on markets and examines the yield curve's behavior. The conversation also touches on the uneven nature of economic recovery and the importance of strong fundamentals.

What is the speaker's outlook on the economy's ability to handle rate hikes in the future?

• The economy will collapse with any rate hikes.

• The economy is too weak to handle rate hikes.

• The economy might withstand rate hikes in a year and a half.

• Rate hikes are not necessary for the economy.

What is the speaker's view on the role of private investors in the tapering process?

• The Fed will continue buying regardless of private demand.

• Tapering will occur regardless of private investors' demand.

• Private investors' demand is crucial for tapering.

• Private investors have no role in the tapering process.

How does the speaker perceive the current inflation pressures?

• Inflation pressures are permanent.

• Inflation pressures are transitory.

• Inflation pressures are uncontrollable.

• Inflation pressures are negligible.

What factors contribute to the speaker's belief that inflation is transitory?

• High commodity prices and supply chain disruptions.

• Lack of demand in the market.

• Permanent changes in the economy.

• Stable oil prices.

What is the speaker's expectation regarding the Fed's future involvement in buying Treasurys?

• The Fed will stop buying Treasurys altogether.

• The Fed will increase its Treasury purchases.

• The Fed will maintain its current level of purchases.

• The Fed might reduce its Treasury purchases due to private demand.

What is the speaker's view on the long-term impact of the current economic recovery?

• The recovery has no impact on income distribution.

• The recovery is faster than previous ones.

• The recovery is uneven and still uncertain.

• The recovery is complete and even.

How does the speaker compare the current recovery to past recoveries?

• The current recovery is faster and more even.

• The current recovery is similar to past uneven recoveries.

• The current recovery is slower but more even.

• The current recovery is unprecedented in its speed.