CPI Seen Keeping 75 Basis Point Fed Hike on the Table

The video discusses the current state of inflation, highlighting the Fed's concerns about high inflation rates and their impact on the economy. It examines monthly inflation numbers, the behavior of goods and services prices, and the Fed's strategy to manage inflation expectations. The discussion includes insights from Fed officials and considerations for future interest rate hikes.

What is one reason for the expected rise in the headline inflation rate?

• Decrease in used car prices

• Decrease in energy prices

• Increase in gas prices

• Increase in food prices

Which type of prices are still higher than the Federal Reserve desires?

• Core goods prices

• Food prices

• Core services prices

• Energy prices

What is a concern for the Federal Reserve if inflation expectations rise?

• It could result in lower interest rates

• It could make inflation more difficult to control

• It could cause a financial crisis

• It could lead to a decrease in employment

What is the potential risk of the Federal Reserve continuing with 75 basis point hikes?

• It could set the federal funds rate too high

• It could lead to a recession

• It could increase unemployment

• It could decrease inflation too quickly

What is a factor the Fed will consider in their decision for the December meeting?

• Global trade agreements

• Climate change policies

• Political stability

• Jobs numbers and financial stability