Fed's Powell Says Slower Growth Needed to Let Supply Catch Up

The transcript discusses concerns about a potential recession and its impact on economic policy. It highlights the need for slower growth to manage inflation and create slack in the economy. The discussion includes the necessity of a period of growth below potential and the expected softening of labor market conditions to achieve a 2% inflation target.

What is the speaker's main concern regarding a recession?

• The effect on international trade

• The President's confidence in avoiding it

• The potential for increased taxes

• The impact on employment rates

Why does the speaker believe economic growth needs to slow down?

• To increase consumer spending

• To boost international trade

• To allow the supply side to catch up

• To reduce government debt

What is one reason given for the expected slowdown in growth?

• Decreasing interest rates

• Rising international demand

• Increased government spending

• High growth in the previous year

What does the speaker predict about labor market conditions?

• They will soften

• They will remain stable

• They will strengthen significantly

• They will become unpredictable

What is the target inflation rate mentioned by the speaker?

• 3%

• 4%

• 2%

• 1%