Fed Holds Interest Rates Near Zero Despite Economic Growth, Inflation

The Federal Reserve's response to the crisis focuses on promoting maximum employment and stable prices, while ensuring financial system stability. Interest rates are kept low to encourage spending, with future increases contingent on achieving employment and inflation targets.

What are the two main goals of the Federal Reserve's mandate during the crisis?

• Decrease employment and increase prices

• Increase interest rates and reduce inflation

• Promote maximum employment and stable prices

• Promote financial instability

What is the current range of interest rates set by the Federal Reserve?

• 0.5% to 1%

• 0% to 0.25%

• 1% to 1.5%

• 0.25% to 0.5%

Why has the Federal Reserve kept interest rates low during the pandemic?

• To decrease employment

• To encourage spending and keep loan rates down

• To increase inflation

• To promote financial instability

Under what conditions will the Federal Reserve consider increasing interest rates?

• When inflation reaches 3%

• When the stock market crashes

• After achieving maximum employment and a 2% rise in inflation

• When unemployment rises

Who is the Federal Reserve Chairman mentioned in the transcript?

• Alan Greenspan

• Jerome Powell

• Ben Bernanke

• Janet Yellen