Fed Minutes Show More Confidence in Economic Outlook

In a recent meeting, FOMC participants upgraded their GDP growth forecasts for 2018 due to increased economic activity, a positive global outlook, and impactful tax changes. Although the Fed did not alter its balance of risks statement, some committee members leaned towards a change. A compromise was reached by adding the word 'further' to indicate gradual rate increases, reflecting a cautious approach. This decision represents a half step towards signaling a quicker pace of rate increases.

What were the main reasons for the FOMC participants upgrading their GDP growth forecasts for 2018?

• Decreased economic activity in the USA and a negative global outlook

• Increased economic activity in the USA and a positive global outlook

• Increased economic activity in the USA and a negative global outlook

• Stable economic activity in the USA and no change in global outlook

What did the Fed's January statement indicate about the balance of risks?

• It completely ignored the balance of risks

• It held back from changing the balance of risks

• It showed a clear change in the balance of risks

• It drastically altered the balance of risks

How did the FOMC signal a potential change in the federal funds rate?

• By decreasing the federal funds rate immediately

• By making no changes to their statement

• By adding the word 'further' to indicate gradual increases

• By removing the word 'further' from their statement

What does the term 'half step' refer to in the context of the FOMC's actions?

• A partial move towards quicker rate hikes

• A reversal of previous decisions

• A minor adjustment with no significant impact

• A complete change in policy direction

What was the FOMC's approach towards signaling a quicker pace of rate increases?

• They reversed their previous stance on rate increases

• They took a full step towards quicker increases

• They took no steps towards quicker increases

• They took a half step towards quicker increases