Fed Chair Powell Says Concept of MMT Is 'Just Wrong'

The video discusses Modern Monetary Theory (MMT), which advocates for using large deficits to fund policies like Medicare for All and free college. It suggests the Federal Reserve should keep interest rates low while Congress manages fiscal policy. The speaker critiques MMT, arguing that deficits do matter and that US debt is growing too fast. The role of central banks is emphasized as achieving employment and price stability, not supporting specific policies.

What are the main proposals associated with modern monetary theory as discussed in the text?

How does the text describe the relationship between fiscal policy and the management of the business cycle?

What concerns are raised regarding the sustainability of US debt in the text?

According to the text, what is the role of the Federal Reserve in relation to fiscal policy?

What is the significance of achieving maximum employment and stable prices as mentioned in the text?