Fed Raises Rates and Still Sees Three Hikes in 2018

The transcript discusses the Federal Reserve's economic forecasts, highlighting a GDP growth increase to 2.5% next year, influenced by tax cuts, but predicts a slowdown in subsequent years. Unemployment is expected to fall below 4%, while inflation remains stable. Interest rates are projected to see three hikes next year. The Fed anticipates stronger growth and a robust job market, though inflation is closely monitored. Notably, there were two dissents favoring looser policies, marking a significant event since 2002. Changes in the Fed's board and leadership are expected, with Janet Yellen stepping down.

What is the expected GDP growth rate for next year according to the Fed's forecast?

• 1.5%

• 2.5%

• 3.0%

• 2.0%

How does the Fed's forecast predict the unemployment rate will change next year?

• It will increase slightly

• It will fall below 4%

• It will remain the same

• It will rise above 5%

What is the Fed's median forecast for interest rate moves next year?

• Three rate moves

• Two rate moves

• Four rate moves

• No rate moves

What change did the Fed make to its labor market outlook?

• Expecting it to collapse

• Expecting it to remain strong

• Expecting it to weaken

• Expecting it to strengthen further

What was significant about the dissents from Chicago's Evans and Minneapolis Kashkari?

• They were the first dissents for looser policy since 2002

• They were the first dissents for tighter policy since 1983

• They were the first dissents for looser policy since 1983

• They were the first dissents for tighter policy since 2002