Powell Says Tax Cuts to Support Economy for at Least Next Two Years

The transcript discusses the 2.6% economic growth estimate and improvements in confidence levels in 2017, partly due to anticipated tax reforms. It highlights the expected support from tax and spending bills for the next few years, which may boost demand and investment, leading to higher productivity. However, these estimates are uncertain in terms of amount and timing.

What was the estimated economic growth rate mentioned in the video?

• 3.0%

• 2.6%

• 2.0%

• 1.5%

What factor contributed to the economic growth in 2017 according to the video?

• Higher consumer spending

• Increased exports

• Technological advancements

• Anticipation of tax reforms

How long is the tax and spending bill expected to support demand?

• Indefinitely

• One year

• Two to three years

• Five years

What potential effect might the tax and spending bills have on the supply side?

• Reduction in labor force

• Increase in investment

• Stagnation of technology

• Decrease in productivity

What is a major challenge in predicting the economic impact of the policies discussed?

• Global economic instability

• Lack of historical data

• Tremendous uncertainty in estimates

• Inconsistent government policies