Powell: Fed Likely to Allow Balance-Sheet Runoff in 2022

The transcript discusses the importance of understanding inflation and references past Federal Reserve actions under Doctor Volker. It emphasizes the need for achieving price stability and outlines plans for normalizing monetary policy, including ending asset purchases and raising interest rates. The discussion also touches on the expectation that supply blockages will ease and labor force participation will improve, contributing to economic recovery.

What historical figure is mentioned as having taken effective measures against inflation?

• Doctor Johnson

• Doctor Brown

• Doctor Smith

• Doctor Volker

What is the current policy approach towards demand?

• Reducing demand

• Ignoring demand

• Stimulating demand

• Restraining demand

What is one of the steps mentioned for normalizing policy?

• Increasing asset purchases

• Lowering interest rates

• Ending asset purchases

• Reducing taxes

What is expected to happen with the labor force according to the speaker?

• Decrease in participation

• No change in participation

• Increase in participation

• Complete automation

What is anticipated to help balance supply and demand?

• More supply and labor force recovery

• Reduced production

• Increased taxes

• Higher inflation