Powell Says Fed Rate Cut Is Insurance Against Ongoing Risks

The video discusses the Federal Reserve's commitment to maximum employment and stable prices, explaining the decision to lower interest rates to support the US economy amid global uncertainties. It highlights the strong performance of the US economy, driven by household spending, despite weakened business investment and exports due to global growth slowdown and trade policy tensions. The video also addresses geopolitical risks like Brexit and their impact on economic outlook, while maintaining a positive forecast for moderate economic expansion.

What are the primary goals set by Congress that the Federal Reserve aims to achieve?

• Balanced budget and trade surplus

• Increased exports and reduced imports

• High interest rates and low inflation

• Maximum employment and stable prices

Why did the Federal Reserve decide to lower interest rates?

• To increase inflation

• To support the US economy amidst notable developments and risks

• To decrease consumer spending

• To reduce government debt

What has been the key driver of growth in the US economy?

• Exports

• Business investment

• Household spending

• Government spending

What are the main reasons for the weakened business investment and exports?

• Slower growth abroad and trade policy developments

• Increased domestic demand

• Improved manufacturing output

• Higher interest rates

Which global regions have shown a notably weakened growth outlook?

• North America and Africa

• Europe and China

• Middle East and India

• South America and Australia