Fed's Powell Expected to Lay Groundwork for Further Tightening

The video discusses the Federal Reserve's economic outlook, highlighting expected rate hikes and factors like consumer spending and global growth. It covers upcoming testimonies in Congress, potential risks such as rising oil prices and trade wars, and concerns about inflation and the yield curve.

What is the Federal Reserve's approach to increasing the federal funds rate?

• A decrease to stimulate the economy

• No change in the federal funds rate

• A gradual approach to support economic expansion

• A rapid increase to control inflation

Which factor is NOT mentioned as part of the positive economic outlook?

• Increased business investment

• Tax cuts

• Stronger consumer spending

• Rising unemployment

How does the Federal Reserve view rising oil prices?

• As a threat to economic stability

• As a factor boosting inflation

• As irrelevant to the US economy

• As a reason to lower interest rates

What is the Federal Reserve's stance on inflation targets?

• They have no specific inflation target

• They are comfortable with inflation slightly above 2%

• They aim to keep inflation below 1%

• They want to eliminate inflation entirely

Why is the yield curve a concern for the Federal Reserve?

• It has historically led to recessions when inverted

• It shows a stable economic environment

• It suggests high inflation rates

• It indicates a booming economy