Clarida: Fed Eyeing ‘Hard Numbers’ on Jobs, Prices Before Move

The video discusses the Federal Reserve's approach to monetary policy, emphasizing the balance between art and science. It introduces a new outcome-based framework focusing on maximum employment and price stability. The video outlines conditions for policy changes, such as sustained inflation and employment indicators. It contrasts preemptive and outcome-based policies, highlighting the importance of actual data. The concept of substantial progress is defined as actual, not projected, progress in labor and price metrics.

What is the primary focus of the Federal Reserve's new framework?

• Preemptive measures

• Outcome-based policy

• Model-based predictions

• Historical data analysis

Which condition is NOT part of the Federal Reserve's criteria for policy changes?

• Sustained labor market indicators

• Inflation reaching 2%

• Sustained inflation

• Projected economic growth

How does the new framework differ from the Fed's past strategies?

• It is more preemptive

• It focuses on short-term goals

• It relies on actual data

• It uses historical trends

What is emphasized over projected progress in the new framework?

• Economic forecasts

• Actual progress

• Theoretical models

• Historical trends

How will the Federal Reserve communicate progress under the new framework?

• By releasing SEP projections

• Via public announcements

• Through annual reports

• Through private meetings