Fed's Kaplan: Future Accommodation to Be Very Gradual

The transcript discusses employment trends, wage growth, and inflation, highlighting the Federal Reserve's approach to interest rate changes. It examines the impact of secular trends like technology disruption and globalization on the economy, and the factors influencing rate increases. The discussion emphasizes a gradual approach to removing economic accommodation, considering market expectations and economic conditions.

What is one of the challenges businesses face in passing on cost increases?

• Decreased consumer demand

• High inflation rates

• Technology-enabled disruption

• Increased labor market slack

What is the Federal Reserve's approach to removing economic accommodation?

• Immediate and comprehensive

• Delayed and cautious

• Rapid and aggressive

• Gradual and shallow

What is the market's expectation regarding the Federal Reserve's actions in the near future?

• A decrease in interest rates

• No change in interest rates

• An increase in interest rates

• A complete halt to rate changes

Which of the following is a secular trend affecting the economy?

• Increasing tax rates

• Aging demographics

• Rising oil prices

• Decreasing unemployment benefits

How does technology-enabled disruption impact business leaders?

• It increases their pricing power

• It reduces competition in the market

• It makes it easier to expand capacity

• It puts downward pressure on pricing power