Fed's Mester Says Economic Fundamentals Are Good, Virus Is a New Risk

The video discusses the current state of the US economy, highlighting the strength of consumer fundamentals despite some volatility in monthly numbers. It addresses the potential risks posed by the coronavirus, particularly its impact on growth forecasts. The manufacturing sector shows signs of stability, though business investment remains uncertain. The video concludes with a discussion on monetary policy, emphasizing that current policies are well-positioned given low inflation and strong labor markets.

What is the current state of the US consumer side according to the transcript?

• It is experiencing a recession.

• It is holding up well.

• It is unpredictable and volatile.

• It is weakening significantly.

How does the speaker view the coronavirus in terms of economic growth?

• As a resolved issue with no future impact.

• As a minor issue with no impact.

• As a significant risk to growth.

• As an opportunity for economic expansion.

What is the general sentiment among manufacturers in the speaker's district?

• They are optimistic about rapid growth.

• They are concerned about an imminent recession.

• They are planning to cut production significantly.

• They see steady conditions without major changes.

What is the speaker's view on the impact of the trade deal phase one?

• It has caused a decrease in business investment.

• It has reduced some uncertainty but its impact is still unclear.

• It has no effect on business investment.

• It has already led to a significant increase in investment.

What is the Federal Reserve's current stance on interest rates according to the speaker?

• They are undecided and waiting for more data.

• They are certain to cut rates this year.

• They plan to increase rates soon.

• They believe the current policy is appropriate.