Powell: 2% Is and Will Remain Our Inflation Target

The video discusses the commitment to maintaining a restrictive monetary policy to control inflation. It highlights the challenges of identifying the appropriate policy stance in real-time and the impact of positive real interest rates on economic activity. The uncertainty in determining the precise level of monetary policy restraint is also addressed.

What is the primary goal of the monetary policy discussed in the video?

• To increase inflation

• To maintain a specific inflation target

• To decrease interest rates

• To boost economic growth

What is one of the challenges mentioned in achieving a restrictive monetary policy stance?

• Predicting future economic growth

• Identifying the neutral rate of interest

• Reducing government spending

• Increasing employment rates

What is a common feature of tightening cycles according to the video?

• Stable economic activity

• Increasing government debt

• Positive real interest rates

• Decreasing inflation rates

How does the current monetary policy stance affect economic activity?

• It puts downward pressure on economic activity

• It stabilizes economic activity

• It has no effect on economic activity

• It boosts economic activity

What uncertainty is associated with the current monetary policy stance?

• The exact level of economic growth

• The future inflation rate

• The impact on employment rates

• The precise level of monetary policy restraint