Fed Drops References to Global Risks in Outlook

Fed Drops References to Global Risks in Outlook

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The transcript discusses the Federal Reserve's communication strategy, particularly the absence of explicit references to risks in their statements. It highlights Janet Yellen's ability to manage market expectations without causing significant volatility. The discussion includes market reactions to Fed announcements and Yellen's skill in using precise language to align market expectations with Fed actions.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was notably absent in the Fed's recent communication compared to previous statements?

References to global economic and financial risks

Discussions on inflation targets

Mentions of interest rate hikes

Comments on employment rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the market react to the Fed's announcement according to the transcript?

There was significant volatility in the stock market

The dollar strengthened significantly

Interest rates dropped sharply

There was minimal movement in rates and the stock market

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What skill is Janet Yellen praised for in managing market expectations?

Increasing interest rates

Threading the needle

Boosting employment

Reducing inflation

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who complimented Janet Yellen on her ability to manage market expectations?

Bill Gates

Larry Fink

Warren Buffett

Elon Musk

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the market's reaction to the Fed's December meeting?

It had no significant impact

It led to a market rally

It caused pain felt through mid-February

It was universally positive