Fed’s Rosengren Says Economy Is in a Good Place, Data ‘Quite Good’

The transcript discusses the economic conditions of 2019, highlighting the volatility experienced and how the outcomes aligned with forecasts. Despite tariffs and global slowdowns, the economy remained stable with growth and low unemployment. The discussion also covers the unexpected strength in consumption and the impact of the Fed's rate cuts. Concerns are raised about the effects of low interest rates on financial markets and the limited room for maneuver if a slowdown occurs.

What was the expected growth rate for the economy by the end of 2019?

• 4%

• 2%

• 3%

• 1%

Which economic component was stronger than expected in 2019?

• Business investment

• Exports

• Consumer spending

• Government spending

What was one of the reasons for weaker business investment and exports?

• High interest rates

• Tariffs and global slowdown

• Increased government spending

• Technological advancements

What is a concern associated with very low interest rates?

• Decreased consumer spending

• Limited room for maneuvering in a slowdown

• Increased inflation

• Higher unemployment

What is the potential risk of financial markets being 'ebullient'?

• Increased savings

• Overheating of financial markets

• Decreased investment

• Lower stock prices