Uncertainty Is a Drag on the Economy, Hoover’s Chen Says

The transcript discusses concerns about the economy, highlighting indicators of a slowdown. It explores potential interventions like payroll tax relief and Fed rate cuts, and considers alternatives such as cutting capital gains tax and rolling back tariffs. The impact of uncertainty, particularly in US-China relations, is noted as a drag on the economy. The Fed's hesitance to act is attributed to a desire to preserve tools for future crises. The discussion concludes with the potential risks and signals sent by implementing tax cuts.

What role does the Federal Reserve play in economic intervention?

What risks are associated with sending signals about the economy's direction?