The Conference Board Chief Economist on Shrinking US Economy

The video discusses the current economic landscape, highlighting the impact of trade imbalances, a strong US dollar, and inflation on consumer behavior. It examines how domestic demand remains strong despite external weaknesses and how the strong dollar affects global trade. The discussion also covers the US Federal Reserve's rate decisions and their potential impact on consumer spending, emphasizing the role of the wealth effect in maintaining spending levels despite inflationary pressures.

What was a significant factor contributing to the disappointing headline figures?

• Rising interest rates

• High consumer spending

• Weakness in net exports

• Strong domestic demand

How does a strong US dollar affect other economies?

• It makes US goods cheaper for them

• It boosts their exports

• It negatively impacts their ability to purchase US goods

• It has no effect on their economies

What global event is mentioned as influencing the US's potential to fill commodity gaps?

• The war in Ukraine

• The COVID-19 pandemic

• Brexit

• The US-China trade war

What is expected to happen to US consumer spending by the middle of the year?

• It will experience a minor fluctuation

• It will increase significantly

• It will remain stable

• It will start to decline

What factor is helping to sustain consumer spending despite inflationary pressures?

• Rising debt levels

• High unemployment rates

• Strong household balance sheets

• Decreasing wages