Warren Buffett Says Fed Needs to Be Careful With QE

The video discusses the potential reduction of quantitative easing by central banks like the Federal Reserve and ECB, and its impact on asset prices. It evaluates the effectiveness of quantitative easing in aiding economic recovery post-2008, highlighting its role in preventing a deeper economic downturn. The discussion also touches on the challenges of managing such policies and their effects on wages and economic growth.

What might be a consequence of central banks reducing their balance sheets?

• Decreased asset values

• Higher inflation rates

• Lower interest rates

• Increased stock prices

What is the approximate value of the Federal Reserve's assets?

• Two trillion dollars

• Four and a half trillion dollars

• Six trillion dollars

• One trillion dollars

How might the Federal Reserve reduce its balance sheet?

• By buying more securities

• By increasing interest rates

• By letting assets mature

• By selling assets directly

What was one of the main benefits of quantitative easing after 2008?

• It led to higher inflation

• It prevented a deeper economic downturn

• It increased average hourly wages

• It reduced government debt

What is the speaker's view on the Federal Reserve's actions during the recovery period?

• They were too cautious

• They were overwhelmingly correct

• They were mostly incorrect

• They were too aggressive