Fed's Clarida Sees Higher Uncertainty in Last 6 to 8 Weeks

The video discusses the current state of the U.S. economy, highlighting its sustained expansion and strong growth. It addresses the potential moderation in growth and the reasons behind considering interest rate cuts, such as elevated uncertainties and global economic challenges. The discussion also covers non-policy shocks, geopolitical uncertainties, and the impact of negative interest rates in other regions.

What is a key characteristic of a solid economy as discussed in the video?

• Weak labor market

• Decreasing inflation

• Sustained economic expansion

• High unemployment rates

Why is there a discussion about cutting interest rates despite a strong economy?

• To decrease unemployment

• Because of a strong labor market

• To increase inflation

• Due to elevated uncertainty in the economic outlook

What are some of the factors contributing to economic uncertainty?

• Stable international trade

• Strong domestic growth

• High consumer confidence

• Crosscurrents and global growth prospects

What is a non-policy shock mentioned in the video?

• Interest rate hikes

• Geopolitical uncertainties

• Tax reforms

• Monetary policy changes

Which regions are mentioned as having negative interest rates?

• Eurozone and Japan

• China and India

• Australia and New Zealand

• United States and Canada