Powell Says US Recession Is 'Certainly a Possibility'

The video discusses the federal funds rate, emphasizing the need to raise rates above a neutral level to combat high inflation. The goal is to reduce inflation to 2% while maintaining a strong labor market. The speaker acknowledges the possibility of a recession if rates rise too quickly, but stresses the importance of flexibility based on incoming data. Recent global events have complicated achieving these economic goals.

What is the proposed federal funds rate to address high inflation?

• 1%

• 4%

• 2.5%

• 3.5%

Why does the speaker suggest raising rates above a neutral level?

• To encourage spending

• To combat high inflation

• To decrease unemployment

• To increase exports

What is the target inflation rate the speaker is committed to achieving?

• 2%

• 3%

• 4%

• 1%

What is the potential risk of raising interest rates too quickly?

• Economic recession

• Increased inflation

• Higher unemployment

• Decreased exports

What external factors have complicated achieving the economic goals?

• Political changes

• Local market trends

• Global events

• Technological advancements