Yellen Defends Biden Stimulus Amid Inflation Concerns

The video discusses the rapid economic recovery supported by significant government actions, including the Cares Act, Consolidated Appropriations Act, and the American Rescue Plan. These measures, along with the Federal Reserve's unprecedented response and global efforts, fueled a robust recovery. The American Rescue Plan was pivotal in driving growth in 2021, despite challenges like the Delta and Omicron variants and global supply shocks. The policies were crafted under uncertainty to mitigate severe downturn risks, akin to the Great Depression.

In what ways did the Federal Reserve respond to the economic challenges posed by the pandemic?

What was the significance of the tail risk considered in the recovery packages?