Economy in Good Place But Confronts Evident Risks: Fed's Richard Clarida

The video discusses the favorable baseline economic outlook with GDP growth expected at 2% and inflation gradually rising towards a 2% target. Despite a strong labor market, risks such as slowed business investment, contracting exports, and global disinflationary pressures are highlighted. The FOMC has responded by lowering the federal funds rate to support growth and address muted inflation pressures. Future monetary policy will be assessed on a meeting-by-meeting basis to sustain economic growth and achieve inflation objectives.

What is the expected GDP growth rate for 2019 according to the committee's projections?

• 1%

• 4%

• 2%

• 3%

Which of the following is NOT mentioned as a risk to the US economy?

• Contracting exports

• Slowed business investment

• Rising unemployment

• Weakening manufacturing activity

What is the current target range for the federal funds rate after the FOMC's recent decisions?

• 1.75% to 2%

• 2% to 2.25%

• 1.5% to 1.75%

• 1.25% to 1.5%

Why did the FOMC decide to lower the federal funds rate?

• To increase inflation pressures

• To respond to muted inflation pressures and economic risks

• To decrease unemployment

• To boost exports

How will the FOMC proceed with monetary policy decisions in the future?

• By assessing the economic outlook on a meeting-by-meeting basis

• By setting a fixed course

• By increasing the federal funds rate

• By following a preset schedule