Powell Says Federal Reserve to 'Proceed Carefully' on Rate Path

The Federal Reserve is committed to promoting maximum employment and stable prices. Despite significant monetary policy tightening, inflation remains above the 2% goal. Economic activity is expanding, with robust consumer spending and a tight labor market. The Fed plans to maintain a restrictive policy stance to bring inflation down, considering economic projections and risks. Future decisions will be data-driven, aiming for price stability and maximum employment.

What is the primary goal of the Federal Reserve's monetary policy?

• To promote maximum employment and stable prices

• To increase government spending

• To reduce taxes

• To control the stock market

Which sector has shown some improvement but remains below last year's levels?

• Technology

• Manufacturing

• Housing

• Healthcare

What is the current unemployment rate mentioned in the transcript?

• 4.1%

• 4.5%

• 3.8%

• 5.2%

What is the Federal Reserve's long-term inflation goal?

• 4%

• 1%

• 3%

• 2%

How much has the Federal Reserve raised its policy rate since early last year?

• 3 percentage points

• 5 and a quarter percentage points

• 6 percentage points

• 4 percentage points

What will guide the Federal Reserve's future policy decisions?

• International trends

• Political pressure

• Public opinion

• Ongoing assessments of data and risks

What is likely required to reduce inflation according to the transcript?

• A period of below-trend growth

• Higher taxes

• More imports

• Increased government spending