Janet Yellen Speaks: Fed Decision in Two Minutes

The transcript discusses the Federal Open Market Committee's (FOMC) monetary policy stance, noting improvements in the labor market despite a slowdown in job growth. It projects GDP growth above normal estimates and inflation gradually returning to 2%. The FOMC plans to reduce asset purchases and maintain the federal funds rate target for a considerable time after the asset purchase program ends, especially if inflation remains below the 2% goal.

What stance has the FOMC taken regarding monetary policy in the labor market?

• A restrictive stance

• A neutral stance

• A highly accommodative stance

• A contractionary stance

What is the projected range for inflation in 2014 according to the FOMC?

• 2.5 to 2.7%

• 1.5 to 1.7%

• 1.0 to 1.2%

• 2.0 to 2.2%

By how much will the FOMC reduce its asset purchases starting next month?

• $10 billion per month

• $20 billion per month

• $15 billion per month

• $5 billion per month

When does the FOMC plan to end its asset purchase program?

• In two years

• At the next meeting

• In one year

• In six months

Under what condition will the FOMC maintain the current federal funds rate target range?

• If inflation exceeds 3%

• If inflation remains below 2%

• If unemployment rises above 10%

• If GDP growth is negative