Clarida Says U.S. Economy Is in a Good Place, Fed Is Watching Risks

The video discusses the current economic conditions, highlighting low unemployment, stable inflation, and solid GDP growth. It explains the federal funds rate's alignment with the Taylor rule and the FOMC's policy stance. The FOMC believes recent inflation softness is temporary and expects inflation to return to 2%. However, it remains vigilant about potential risks from global developments and inflation shortfalls.

What is the current state of the unemployment rate according to the transcript?

• At a 50-year high

• Near a 50-year low

• Increasing rapidly

• Unchanged from last year

According to the 1993 Taylor type rule, what is the suggested range for the federal funds rate?

• Between 3% and 3.5%

• Between 2% and 2.25%

• Between 2.25% and 2.5%

• Between 1% and 1.5%

What has the FOMC reaffirmed since January regarding the policy rate?

• To keep it within the range of 2.25% to 2.5%

• To increase it significantly

• To eliminate it entirely

• To decrease it below 2%

What is the FOMC's view on the recent softness in inflation data?

• It requires immediate policy change

• It is a permanent change

• It is expected to be temporary

• It will lead to deflation

What might prompt the FOMC to reassess its policy stance?

• An increase in interest rates

• A rise in unemployment

• A persistent inflation shortfall below 2%

• A decrease in GDP growth