Powell Says Fed Is Doing All It Can to Keep Economy Strong

The video discusses the current state of the economy, highlighting low unemployment, rising wages, and unstable inflation. It acknowledges that not all Americans benefit equally and outlines the Federal Reserve's efforts to maintain economic strength. The Fed has been gradually increasing interest rates to normalize the economy after the financial crisis. Additionally, steps have been taken to strengthen the financial system by imposing higher standards on banks. The overall goal is to create an environment where all Americans can succeed.

What are some indicators of a strong economy mentioned in the video?

• High unemployment and low wages

• Low unemployment and rising wages

• High inflation and low employment

• Decreasing number of people working

What is the Federal Reserve's approach to interest rates as the economy strengthens?

• Keeping interest rates high permanently

• Gradually increasing interest rates to normal levels

• Eliminating interest rates altogether

• Reducing interest rates to zero

Why did the Federal Reserve initially set very low interest rates?

• To encourage inflation

• To support an economy recovering from a financial crisis

• To discourage job growth

• To increase the value of the dollar

What steps have been taken to make the financial system safer?

• Allowing banks to take more risks

• Reducing oversight of financial institutions

• Increasing the amount of capital and liquidity banks hold

• Lowering standards for banks

How is the financial system better positioned today compared to the past?

• It has fewer resources to manage risks

• It is more vulnerable to economic downturns

• It is stronger and better able to support financial needs

• It is less regulated and more flexible