Williams Says New Strategy Will Help Fed Meet Mandate Goals

Williams Says New Strategy Will Help Fed Meet Mandate Goals

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the impact of a low neutral rate and persistently low inflation on economic policy. It outlines a strategy to temporarily overshoot the 2% inflation target to stabilize inflation expectations. The goal is to maintain inflation averages at 2% over time, aligning with long-term targets. Additionally, the focus is on achieving maximum employment by addressing shortfalls. These policy changes are designed to reinforce each other and improve the ability to meet dual mandate goals in a low neutral rate environment.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might a temporary overshoot of the 2% inflation target be considered necessary?

To boost employment

To increase consumer spending

To stabilize inflation and expectations

To decrease interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the long-term inflation target mentioned in the video?

4%

3%

1%

2%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the statement clarify about the inflation rate over time?

It should fluctuate with market trends

It should be below 2%

It should average 2% over time

It should be above 3%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the goal related to employment as discussed in the video?

To focus on urban employment

To achieve maximum employment

To reduce employment benefits

To increase part-time jobs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do the changes discussed in the video support the dual mandate goals?

By reducing government spending

By reinforcing the commitment to inflation and employment targets

By focusing solely on inflation

By increasing taxes