Summers Says Fed Should Raise Rates Four Times Next Year

Jay Powell testified before Congress, acknowledging that inflation is more pervasive than expected. He suggested moving up the timeline for tapering and retiring the term 'transitory' from inflation discussions. The real interest rate is at a historic low, indicating a need to end QE and consider rate hikes. Four rate increases next year are proposed to restore credibility and address inflation, with caution to avoid recession risks.

What did Jay Powell suggest regarding the term 'transitory' in the context of inflation?

• To ignore it

• To redefine it

• To retire it from discussions

• To continue using it

What is the current state of the real interest rate according to the discussion?

• At its highest ever

• Stable and positive

• At its lowest ever

• Slightly above zero

What action does the speaker suggest regarding quantitative easing (QE)?

• To increase it

• To end it rapidly

• To decrease it slowly

• To continue indefinitely

What is the speaker's view on the number of interest rate hikes needed next year?

• Eight hikes

• Four hikes

• Two hikes

• No hikes

What is the potential risk if the Fed delays action on inflation?

• Increased inflation

• Economic stability

• A possible recession

• Deflation