Question

In the video clip of the Fed Chair's FOMC statement, he states that the U.S. economy Is in a good place with strong macroeconomic conditions. However, he mentions that there are some cross-currents or signals of potential weakness. Which of the following is not one of those cross-currents? O Declining wage gains Slower growth in major foreign economies O Uncertainty around trade negotiations Declining consumer and business confidence

Answer 1

According to the December statement

Declining wage gains is not a cross current as wage gains have risen by 3%.

Slower growth in major foreign economies is a cross current as major economies such as Germany, Britain and Japan are slowing down.

Uncertainty around trade tensions is also a cross current as tariffs and sanctions are increasing with slight optimism in talks resolving tensions

The Fed chair explicitly stated that consumer confidence is on the rise but business investment has fallen which is one of the cross currents.

Thus first option is the answer