Fed Keeps Benchmark Rate Unchanged

The video discusses the Federal Reserve's decision to scale back its rate hike plan, reducing the expected increase to half a percentage point by the end of the year. This marks a significant change from the full point increase anticipated in December. The shift is attributed to external economic factors posing risks to the US economy. The Fed's statement highlights a moderate pace of economic activity and strengthening labor market indicators, while acknowledging global economic and financial developments as potential risks.

What significant change did the Fed make to its rate hike plan?

• Kept the rate hike plan unchanged

• Reduced the rate hike plan to half a percentage point

• Increased the rate by a full percentage point

• Eliminated the rate hike plan entirely

Why did the Fed decide to adjust its rate expectations?

• Due to internal economic growth

• To encourage more borrowing

• Because of external factors posing risks

• To align with global interest rates

What does the Fed's statement say about economic activity?

• It will remain stagnant

• It will expand at a moderate pace

• It will decline rapidly

• It will grow exponentially

What is expected to continue strengthening according to the Fed's statement?

• Stock market

• Housing market

• Global trade

• Labor market indicators

What risks does the Fed acknowledge in its statement?

• Political instability

• Global economic and financial developments

• Technological advancements

• Environmental changes