Chair Powell Says Fed Isn’t Out of Ammo

The transcript discusses the Federal Reserve's approach to maintaining an accommodative policy to support economic recovery. It highlights the Fed's tools, such as lending tools, balance sheet management, and forward guidance, to influence interest rates and stimulate the economy. The Fed believes its current rate policy is appropriate and powerful, aiming to keep it accommodative until recovery is well underway. The discussion emphasizes that the Fed is not out of options and can still use various tools to achieve its economic goals.

What is the Federal Reserve's main strategy for supporting economic recovery?

• Lowering interest rates

• Increasing taxes

• Reducing government spending

• Raising interest rates

Which of the following is NOT mentioned as a tool available to the Federal Reserve?

• Forward guidance

• Balance sheet management

• Tax incentives

• Lending tools

What is the Federal Reserve's stance on being out of options for economic stimulus?

• They are out of options

• They have limited options

• They have plenty of tools available

• They rely solely on fiscal policy

What does the Federal Reserve emphasize about its rate policy stance?

• It is ineffective

• It is powerful

• It is inappropriate

• It is temporary

How does the Federal Reserve plan to support the economy over time?

• By increasing interest rates quickly

• By cutting government spending

• By maintaining accommodative policy until recovery is well along

• By reducing the money supply