Now Is the Time to Take Steps to Get Debt Under Control, Says Northern Trust

Chair Powell discusses the risks of leveraged lending and the high levels of global debt, emphasizing the need for financial stability. He highlights the resilience of the US financial system, strengthened by increased capital and stress testing. Powell also addresses wage dynamics, inflation, and trade tensions with China, noting the challenges these pose to economic policy.

What is one of the key responsibilities of central banks according to Chair Powell?

• To increase interest rates

• To control inflation directly

• To monitor financial stability

• To reduce government debt

How does the current level of global debt compare to the period before the 2008 financial crisis?

• It is not mentioned

• It is higher now

• It is about the same

• It is lower now

What tool does Chair Powell mention as important for assessing the strength of U.S. banks?

• Interest rate adjustments

• Stress testing programs

• Government bailouts

• Tax incentives

What is Chair Powell's view on the Phillips Curve?

• It is just resting

• It is dead

• It is completely irrelevant

• It is fully active

What external factor is mentioned as a challenge for the Fed's policy decisions?

• Trade tensions with China

• Rising oil prices

• Technological advancements

• Climate change