Fed's Dudley Says Couple More 2017 Hikes Seems Reasonable

The transcript discusses the Federal Reserve's approach to interest rate hikes in 2017, focusing on the factors influencing these decisions, such as economic data, inflation, and employment. It explains the rationale behind the March rate hike and considers future rate adjustments based on economic conditions. The concept of a neutral federal funds rate is explored, along with its implications for monetary policy. The impact of rate changes on the labor market and job growth is also examined.

What was the main reason for the uncertainty in predicting the number of rate hikes in 2017?

• The change in leadership at the Federal Reserve

• The unpredictability of economic data

• The Federal Reserve's lack of communication

• The influence of global markets

Why did the Federal Reserve decide to raise rates in March?

• Pressure from Wall Street

• A sudden change in economic conditions

• Consistent economic performance above trend

• A significant increase in inflation

What is the neutral federal funds rate adjusted for inflation?

• Between 0 and 1%

• Between 3 and 4%

• Between 1 and 2%

• Between 2 and 3%

What factor allows for steady job gains without increasing labor market pressure?

• Increased government spending

• Rising inflation

• Discouraged workers re-entering the labor force

• High unemployment rate

What is the goal of adjusting the federal funds rate according to the transcript?

• To increase inflation quickly

• To prevent the economy from overheating

• To decrease unemployment rapidly

• To stimulate rapid economic growth