Fed Is Not Holding Back U.S. Economy, Harvard's Furman Says

The video discusses the U.S. economy's growth above its potential, driven by accommodative Fed policies, leading to higher interest rates compared to other major economies. It highlights the Fed's concerns about global uncertainty, particularly trade issues, and the potential for rate cuts. The importance of data dependency in Fed decisions is emphasized, with recent data showing strong performance. Manufacturing weakness is noted, but monetary policy should consider the entire economy. Global slowdowns and the debt limit are also discussed, with the latter potentially being resolved for two years.

What potential issues could arise from global economic uncertainty?

What is the significance of the manufacturing sector in the context of monetary policy?