Fed's Musalem: Time May Be Near to Slow or Pause Cuts

What is the main reason for considering a slowdown in interest rate reductions?

• To assess the economic environment

• To increase inflation

• To boost employment

• To decrease economic growth

Which of the following is true about the current economic environment?

• Core inflation is below target

• The economy is shrinking

• The labor market is at full employment

• Risks around price stability have decreased

What has shifted in the balance of risks related to economic goals?

• Productivity trends are stable

• Risks around price stability and employment have shifted

• The economy is at risk of deflation

• There is more certainty about the neutral policy rate

Why is it important to return inflation to 2%?

• To anchor inflation expectations

• To reduce employment

• To destabilize the economy

• To increase economic uncertainty

What is the expected outcome of maintaining price stability?

• Reduced employment

• Increased inflation

• Economic contraction

• Sustained economic expansion