Fed's Kaplan Says Taper Is Coming, Just a Question of When

The transcript discusses the Federal Reserve's approach to adjusting economic policies post-pandemic, comparing it to the Great Recession. It highlights the importance of substantial progress in the market, focusing on supply issues rather than demand. The discussion includes employment and inflation benchmarks, the impact of the delta variant, and the effectiveness of current purchases. The transcript concludes with considerations for winding down quantitative easing and the need for gradual implementation.

What is the speaker's view on the public debate about economic adjustments?

• It is unnecessary and should be avoided.

• It is irrelevant to the current economic situation.

• It is beneficial as it prepares the market for upcoming changes.

• It is confusing and creates panic in the market.

According to the speaker, what is the current economic issue?

• An excess of demand.

• A lack of demand.

• A lack of supply.

• An excess of supply.

What does the speaker consider as evidence of substantial progress?

• A decrease in inflation rates.

• A rise in stock market indices.

• An increase in consumer spending.

• Weathering the pandemic and improving the job market.

What is the consensus on Wall Street regarding the timeline for winding down QE?

• It should be done as quickly as possible.

• It should take about a year.

• It should be delayed until the economy fully recovers.

• It should be completed within six months.

How does the speaker suggest the QE wind-down should be approached?

• Not at all, as it is unnecessary.

• Aggressively, to quickly stabilize the economy.

• Gradually, to ensure market stability.

• Immediately, to prevent further economic issues.