Powell, Yellen Weigh in on State of Economy

The transcript discusses the potential for interest rates to rise from historically low levels due to economic conditions. It highlights ongoing economic challenges, particularly for small businesses, and anticipates upward pressure on prices. The risk of persistent inflation above target levels is addressed, with a commitment to using available tools to manage inflation back to a 2% goal.

What is one reason for the potential increase in interest rates?

• To increase consumer spending

• To encourage more borrowing

• To address ongoing economic challenges

• To decrease government debt

What is expected to happen to prices in the near term according to forecasters?

• Prices will fluctuate unpredictably

• There will be upward pressure on prices

• Prices will decrease

• Prices will remain stable

Why are small businesses struggling in the current economic climate?

• Due to technological advancements

• Because the economy is not supportive enough

• Because of increased competition

• Due to high consumer demand

What could be a consequence of substantially higher inflation?

• Decreased interest rates

• Persistent inflation above the target

• Stable economic growth

• Increased savings rates

What action would be taken if inflation exceeds the target?

• Encourage more imports

• Lower taxes

• Increase government spending

• Use tools to bring inflation back to 2%