Kashkari Says Fed Surprised by Economy's Strength

The video discusses the economic reopening post-pandemic, highlighting high inflation and a strong labor market. It notes that wages were not the primary driver of inflation, contrary to traditional economic expectations. The video explains the aggressive interest rate hikes over the past 18 months, which have slowed the economy but revealed its resilience. Inflation is decreasing, but it remains above target levels. The labor market remains robust, posing a challenge in determining if further measures are needed to achieve the 2% inflation target.

What was surprisingly not the main driver of inflation during the pandemic reopening?

• Consumer demand

• Wages

• Energy prices

• Supply chain disruptions

How much have interest rates been raised over the last 18 months?

• 3 percentage points

• 4 percentage points

• 5.5 percentage points

• 6 percentage points

Despite high interest rates, what characteristic has the economy shown?

• Resilience

• Vulnerability

• Stagnation

• Decline

What is the current status of inflation according to the video?

• It is increasing rapidly

• It has stabilized

• It is coming down but still too high

• It is below the target

What is the ongoing challenge mentioned regarding inflation?

• Reducing unemployment

• Raising interest rates further

• Increasing consumer spending

• Bringing inflation down to 2%