What Will We Hear From Fed's Yellen on Friday?

The transcript discusses the Federal Reserve's future monetary policy, focusing on potential rate hikes and how the Fed plans to operate in a lower neutral rate environment. It highlights market skepticism about the Fed's credibility and the impact of employment numbers on future decisions. The discussion also covers the possibility of shifting focus from employment to inflation targets, questioning the credibility of raising inflation targets and its impact on businesses and consumers.

What is the main focus of the Federal Reserve's policy as discussed in the first section?

• Eliminating unemployment completely

• Reducing inflation to zero

• Operating in a lower neutral rate world

• Increasing interest rates significantly

What is the market's reaction to the Fed's potential rate hike in September?

• The market is fully supportive

• The market is skeptical

• The market is indifferent

• The market is confused

What factor is crucial for the Fed to maintain its credibility according to the second section?

• High inflation rates

• Frequent rate hikes

• Consistent communication

• Low unemployment rates

As full employment nears, what shift in focus is being debated for the Fed?

• From employment to inflation

• From growth to stability

• From stability to growth

• From inflation to employment

What is the potential impact of raising the inflation target on businesses?

• It boosts investment

• It decreases investment

• It causes confusion

• It has no impact