U.S. Has Fiscal Space to Respond to Crisis: Economist

The transcript discusses the Federal Reserve's forward guidance and its implications for fiscal policy, highlighting the political challenges in passing stimulus bills. It explores the Fed's role in achieving maximum employment and controlling inflation, emphasizing the importance of running the economy at full capacity. The discussion also covers the potential impact of pent-up demand post-vaccine and evaluates the effectiveness of the Fed's programs in stimulating the real economy.

What does the speaker suggest about the relationship between unemployment rates and inflation?

How does the speaker view the current state of the economy in terms of pent-up demand?

What are the implications of the Fed's changes to the Main Street lending programs?