Dudley Calls for More Fiscal Aid as Recovery Flattens Out

The transcript discusses the current state of the U.S. economy, highlighting the stalling recovery and rising jobless claims. It emphasizes the limited tools available to the Federal Reserve, such as asset purchases and interest rate guidance, and stresses the critical role of fiscal policy, especially with the impending expiration of unemployment benefits.

What recent trend in economic data is causing concern for policymakers?

• A decrease in consumer spending

• An increase in jobless claims

• A rise in housing prices

• A drop in stock market indices

What is the expected trend for the unemployment rate according to the speaker?

• It will decrease rapidly

• It will remain high for some time

• It will fluctuate unpredictably

• It will stabilize at a low level

What is one of the Federal Reserve's potential actions to support the economy?

• Cutting government spending

• Increasing interest rates

• Reducing asset purchases

• Providing more definitive forward guidance

What is the speaker's view on the effectiveness of monetary policy alone?

• It should be the primary focus

• It is unnecessary in the current climate

• It has limited effectiveness without fiscal policy

• It is sufficient to drive recovery

What is the potential consequence of not replacing the expired unemployment benefits?

• A decrease in government debt

• A weaker economy than anticipated

• An increase in consumer confidence

• A stronger economic recovery