Political Uncertainty Is The Last Thing Markets Need Now, Oxford Economics Says

The video discusses the limited economic impact of a partial government shutdown, emphasizing the importance of avoiding political uncertainty. It highlights the Federal Reserve's challenges in communicating its intent to tighten monetary policy without causing negative market reactions. The video also analyzes the significant tightening of financial conditions and its impact on economic growth.

What percentage of the US budget has already been appropriated, minimizing the economic impact of a government shutdown?

• 75%

• 50%

• 100%

• 25%

What is the main concern for markets during a partial government shutdown?

• Rising inflation

• Political uncertainty

• Increased government spending

• Decreased consumer confidence

What is the Federal Reserve's key challenge in the upcoming year?

• Increasing government spending

• Communicating monetary policy intentions

• Stabilizing the housing market

• Reducing interest rates

How have financial conditions changed over the past year?

• They have become unpredictable

• They have tightened significantly

• They have remained stable

• They have loosened significantly

What impact have tightened financial conditions had on GDP growth?

• No impact on GDP growth

• Increased GDP growth by 0.5 percentage points

• Reduced GDP growth by 0.4 percentage points

• Increased GDP growth by 1 percentage point