Powell Says Fed to Respond to Market Volatility If Goals Are at Risk

The transcript discusses the Federal Reserve's role in financial stability, emphasizing that while financial stability is part of the Fed's responsibilities, it is not an official mandate. The Fed's primary mandate is maximum employment and stable prices. The transcript also clarifies that financial stability refers to the financial system's ability to support economic activity, not stock market stability. It addresses the impact of broader financial conditions on the macro economy and the Fed's dual mandate.

What has always been a part of the Federal Reserve's responsibilities?

• Financial stability

• Stock market stability

• Currency exchange rates

• International trade policies

What is the primary mandate of the Federal Reserve?

• Stock market growth

• International trade balance

• Currency stabilization

• Maximum employment and stable prices

What does financial stability primarily refer to?

• The stability of currency exchange rates

• The stability of stock prices

• The stability of international trade

• The ability of the financial system to function effectively

How does the Federal Reserve view major changes in broader financial conditions?

• As a minor concern

• As crucial for achieving their dual mandate

• As solely affecting stock markets

• As irrelevant to their mandate

What is considered when there are sustained changes in financial conditions?

• Only stock market trends

• The impact on the macro economy

• International trade agreements

• Currency exchange rates