Fed's Harker Says Let Rates 'Stay Up There' and Play Out

The transcript discusses economic strategies, focusing on inflation control and the Federal Reserve's approach. It highlights the importance of methodical actions, the impact of global events like the Ukraine situation, and the volatility of energy and food prices. The speaker emphasizes the need to control inflation without harming the economy, considering potential recession risks. The discussion also covers the concept of neutral and restrictive rates, aiming for a balance to ensure economic stability.

What is the target rate mentioned for the year-end to stabilize the economy?

• 3.0%

• 4.0%

• 3.4%

• 2.5%

Which global event is highlighted as impacting inflation and the economy?

• The US-China trade war

• Brexit

• The COVID-19 pandemic

• The situation in Ukraine

What is the speaker's view on the possibility of a recession?

• It is impossible

• It is highly probable

• It is not in the forecast but possible

• It will definitely happen

What are the two camps' views on reaching the terminal rate?

• Quickly to get ahead of inflation vs. slowly to avoid economic downturns

• Quickly to boost the economy vs. slowly to control inflation

• Slowly to boost the economy vs. quickly to control inflation

• Quickly to avoid recession vs. slowly to boost the economy

What is the speaker's stance on the 'neutral' rate?

• It should be below 3%

• It should be exactly 3%

• It is clearly above 3%

• It is irrelevant to the current situation