Downside Risks Should Make Fed Reticent About Rate Hikes, Kocherlakota Says

The transcript discusses economic uncertainties and potential risks for 2019-2020, focusing on the Federal Reserve's tools and strategies to manage these challenges. It highlights the debate on the effectiveness of quantitative easing (QE) and the impact of interest rate changes on the economy. The discussion emphasizes the need for gradual rate increases to maintain economic stability and control inflation, while considering the limitations of the Fed's tools in addressing future economic shocks.

What did Ben Bernanke predict for the economy in 2020?

• A steady economic growth

• A decrease in unemployment rates

• A 'Wile E Coyote moment' due to fading fiscal stimulus

• A significant economic boom

What is one of the Federal Reserve's tools to maintain economic stability?

• Increasing taxes

• Adjusting interest rates

• Reducing government spending

• Implementing trade tariffs

What is a debated topic among macroeconomists regarding QE?

• Its impact on inflation

• Its ultimate effect on the economy

• Its role in reducing unemployment

• Its influence on global trade

Since when have interest rate increases been impacting the economy?

• 2020

• 2010

• 2015

• 2005

What is the primary reason for raising interest rates according to the discussion?

• To boost economic growth

• To control inflation

• To increase employment

• To enhance consumer spending