Powell: Another Unusually Large Hike Depends on Data

The transcript discusses the Federal Reserve's efforts to address high inflation and maintain economic stability. It highlights the resilience of the economy, the need to reduce inflation to a 2% goal, and the tight labor market. The FOMC has raised interest rates and plans further increases to manage inflation. Economic indicators show slowed growth, but demand remains strong. The Fed is committed to its mandate of maximum employment and stable prices, acknowledging the challenges and uncertainties in the current economic environment.

What is the Federal Reserve's primary goal in raising interest rates?

• To decrease unemployment

• To boost the housing market

• To stabilize prices and control inflation

• To increase consumer spending

Which sector has shown signs of weakening due to higher mortgage rates?

• Housing

• Healthcare

• Manufacturing

• Technology

What was the 12-month change in the Consumer Price Index in June?

• 9.1%

• 6.3%

• 5.9%

• 4.7%

What is the Federal Reserve's target inflation rate?

• 3%

• 5%

• 2%

• 4%

What is the Federal Reserve looking for in the coming months to adjust their policy?

• Increased consumer spending

• Compelling evidence of inflation decreasing

• Higher employment rates

• Stronger housing market

Why is it important for the Federal Reserve to be flexible in its monetary policy?

• To keep interest rates low

• To ensure rapid economic growth

• To quickly respond to unexpected economic changes

• To maintain high employment rates

What might be a necessary outcome to restore price stability according to the Federal Reserve?

• Rapid job creation

• Increased consumer spending

• Below trend economic growth

• Higher inflation rates