Fed's George Sees Two More 2018 Rate Hikes as 'Appropriate'

The transcript discusses the potential for two more rate hikes in the current year, emphasizing the need for reassessment at each meeting based on economic data and constituent feedback. It highlights a consensus within the committee on the economic state, though differences exist on the number of rate hikes needed. The discussion also covers economic performance, risks of procyclical fiscal policy, and the challenge of determining the neutral rate. The importance of evaluating policy restrictiveness and the lag effect of policy changes are also noted.

What is the main focus of the first section regarding economic policy?

• The impact of global trade on the economy

• The need for immediate rate cuts

• The role of technology in economic growth

• The potential for two more rate hikes this year

What does the second section highlight about the committee's view on the economy?

• There is a strong consensus on the number of rate hikes needed

• The committee plans to reduce interest rates

• The committee is undecided about fiscal policy

• There are differing opinions on the state of the economy

What risk is mentioned in the second section that could affect economic policy?

• Deflationary pressures

• Decreasing consumer confidence

• Procyclical fiscal policy

• Rising unemployment

What is the 'neutral rate' discussed in the third section?

• A rate that ensures low inflation

• A rate that guarantees economic expansion

• A rate that is set by international markets

• A rate that neither stimulates nor restricts economic growth

What challenge does the committee face regarding the neutral rate?

• Determining if the policy is restrictive or accommodative

• Deciding on immediate rate cuts

• Predicting global economic trends

• Balancing trade deficits