St. Louis Fed President Bullard on Trade War, U.S. Economy

The video discusses the impact of the trade war on the US agricultural sector, highlighting concerns over reduced exports and government payments to farmers. It examines how prolonged tariffs could affect Federal Reserve policy, noting the potential for investment hesitation. The discussion shifts to US interest rates, with concerns about restrictive rates and low inflation, suggesting a possible rate cut. Despite economic growth, inflation remains below the 2% target, prompting a call to recenter inflation expectations.

What is the main concern of the US farming community regarding the trade war?

• Increased domestic competition

• Decreased soybean exports

• Higher production costs

• Lack of government support

Under what condition might the trade war start to influence Federal Reserve policy?

• If tariffs are lifted immediately

• If tariffs remain for six months without resolution

• If the US economy grows rapidly

• If inflation rates increase significantly

How might the trade war affect investment behavior according to the discussion?

• It results in increased foreign investment

• It encourages immediate investment

• It has no impact on investment decisions

• It leads to a wait-and-see approach

What is the current stance of the Federal Reserve on interest rates for 2019?

• Rates are expected to fluctuate significantly

• Rates are expected to decrease

• Rates are expected to increase

• Rates are expected to remain flat

What is a major concern regarding inflation in the US economy?

• Inflation is above the 2% target

• Inflation is below the 2% target

• Inflation is highly volatile

• Inflation is not measured accurately