Clarida: Very Confident Economy Recovers, Fed Can Unwind Steps

The transcript features a discussion with the Vice Chairman on the Federal Reserve's response to the COVID-19 pandemic. It covers the Fed's confidence in managing the balance sheet, interest rates, and lending facilities. The conversation explores credit flow to businesses and households, potential economic recovery scenarios, and the implications of monetary policy on moral hazard. The future of central banking, including the balance between rules-based and discretionary approaches, is also discussed.

What does the speaker mean by 'building a bridge' until the economy recovers?

How does the speaker differentiate between supply and demand shocks in the current situation?

What does the speaker believe about the moral hazard associated with the Fed's actions?

What is the speaker's perspective on the future of rules-based versus discretionary monetary policy?