Yellen: Case to Raise U.S Rates Is Getting Stronger

Janet Yellen discusses the improved economic data and the strengthened case for increasing the federal funds rate. She highlights improvements in the labor market and inflation concerns, while cautioning about economic uncertainties and policy limitations. Yellen defends the Fed's policy actions during the recession and recovery, emphasizing the need for future tools and fiscal policy. She also addresses the Fed's ability to respond to future recessions, even with low interest rates.

What does Janet Yellen say about the labor market and inflation?

• The labor market is stable, and inflation is unpredictable.

• The labor market has improved, and inflation is still low.

• The labor market has worsened, and inflation is high.

• The labor market is declining, and inflation is rising.

According to Yellen, what is the forecast for the federal funds rate in the longer run?

• It will increase to 5%.

• It will settle at about 3%.

• It will remain at 0%.

• It will decrease to 1%.

What does Yellen say about the Fed's ability to predict future rates?

• The Fed does not attempt to predict future rates.

• The Fed's ability to predict future rates is quite limited.

• The Fed can predict future rates with high accuracy.

• The Fed has a preset course for future rates.

What tools does Yellen mention as necessary for the Fed going forward?

• Higher inflation targeting and nominal GDP.

• Zero rates and a big balance sheet.

• Increased taxes and reduced spending.

• Elimination of interest on excess reserves.

How does Yellen view the Fed's preparedness for future recessions?

• The Fed is unprepared for future recessions.

• The Fed plans to increase interest rates significantly.

• The Fed can respond effectively even with low interest rates.

• The Fed will struggle due to high interest rates.