Fed Signals Readiness to Hike If Economy Stays On Track

The video covers the Federal Reserve's discussions from the latest FOMC meeting. Key topics include the potential for raising interest rates, confidence in inflation staying near the 2% target, and the impact of low unemployment on wage growth. Trade and fiscal stimulus are identified as risks, with the latter possibly not boosting the economy as expected. The Fed also plans to revisit balance sheet discussions and faces challenges in defining the neutral rate due to varying estimates.

What is the Federal Reserve's target inflation rate mentioned in the meeting?

• 4%

• 3%

• 1%

• 2%

Which factor was mentioned as a potential downside risk in the FOMC meeting?

• Increasing unemployment

• Technological advancements

• Trade concerns

• Rising oil prices

What new downside risk was highlighted regarding fiscal stimulus?

• It might not boost the economy as expected

• It may cause a stock market crash

• It may lead to higher inflation

• It could increase the national debt

What did the chairman suggest about the balance sheet discussion?

• It should be postponed indefinitely

• It should be simplified

• It should resume soon

• It is not necessary

Why is determining the neutral rate expected to be challenging next year?

• It is already well-defined

• There are many different estimates

• There are too few estimates available

• It is not a priority for the Fed