Fed Raises Rates by a Quarter Point, Signals More Ahead

The video discusses the Federal Reserve's decision to raise the federal funds target range by 25 basis points, with plans for further increases. The Fed aims to return inflation to 2% while maintaining a strong labor market. The impact of the Ukraine invasion on the US economy is uncertain but expected to increase inflation pressure. Economic growth forecasts have been revised down, with unemployment expected to remain stable. The Fed's long-term rate is projected at 2.4%, with one dissenting vote from Jim Bullard, who favored a larger rate increase.

What is the target range for the federal funds rate by the end of 2022?

• 0.5% to 1%

• 1.9%

• 2.4%

• 3%

What does the Federal Reserve expect regarding inflation and the labor market?

• Inflation to stabilize at 3% and the labor market to weaken

• Inflation to drop to 1% and unemployment to decrease

• Inflation to return to 2% and the labor market to remain strong

• Inflation to rise above 5% and unemployment to increase

What external factor is mentioned as causing economic uncertainty?

• Brexit

• Trade war with China

• COVID-19 pandemic

• Invasion of Ukraine by Russia

What is the revised economic growth forecast for the U.S. in 2023?

• 1.5%

• 3.5%

• 2.2%

• 4%

Who dissented in the Federal Reserve's decision, and what was their opinion?

• San Francisco Fed President, wanted a 75 basis point increase

• New York Fed President, wanted no rate change

• Saint Louis Fed President, wanted a 50 basis point increase

• Chicago Fed President, wanted a 25 basis point decrease