Powell: Fed Seeks Return to 'Sufficiently Restrictive' Rates

The transcript discusses the Federal Reserve's commitment to restoring price stability, emphasizing the importance of maintaining a 2% inflation goal. It outlines recent monetary policy actions, including interest rate hikes and balance sheet reductions, to address inflation. The US economy's slowdown, labor market conditions, and inflation trends are reviewed, with projections for future economic activity. The Fed's mandate to promote maximum employment and stable prices is highlighted, along with the challenges posed by high inflation.

What is the primary responsibility of the Federal Reserve mentioned in the first section?

• Providing loans to businesses

• Regulating the stock market

• Maintaining price stability

• Ensuring maximum employment

What has contributed to the slowdown in consumer spending according to the second section?

• Decreased interest rates

• Higher employment rates

• Lower real disposable income

• Increased government spending

Which sector has been significantly affected by higher mortgage rates?

• Housing

• Technology

• Healthcare

• Automobile

What was the 12-month change in the Consumer Price Index (CPI) in August?

• 8.3%

• 5.4%

• 6.3%

• 4.6%

What geopolitical event has contributed to the recent increase in energy and food prices?

• Brexit

• US-China trade war

• Russia's war against Ukraine

• Middle East peace talks

What is the Federal Reserve's target range for the federal funds rate by the end of this year?

• 3.5%

• 2.9%

• 5.0%

• 4.4%

What is the overarching focus of the Federal Reserve's actions as mentioned in the last section?

• Reducing inflation to 2%

• Increasing employment rates

• Lowering interest rates

• Boosting exports