Bill Dudley Says CPI Could Make July Last Fed Rate Hike

The video discusses the concept of transitory disinflation, highlighting the shift in consumer behavior from goods to services post-pandemic, leading to weak goods prices. It examines the impact on inflation and the Fed's response, noting that despite positive economic growth, the Fed may not change its course in the July meeting. The possibility of future rate hikes is considered, with a focus on the November meeting as a potential turning point.

What caused the initial rise in goods prices during the pandemic?

• Decreased demand for services

• Decreased demand for goods

• Increased demand for services

• Increased demand for goods

What is the current economic growth rate for the third quarter according to the Fed GDP now tracker?

• 1.5%

• 2.3%

• 3.0%

• 2.0%

Why might the Fed not change its decision at the July meeting despite a positive report?

• They have already decided to cut rates

• The economy is still strong

• They are waiting for more data

• They are focusing on the labor market

What is the potential significance of the July meeting for the Fed's rate hikes?

• It will have no impact on future decisions

• It might be the last rate hike

• It could be the first rate hike

• It will definitely result in a rate cut

What is uncertain about the Fed's decision for November?

• Whether they will increase rates

• Whether they will change their policy

• Whether they will decrease rates

• Whether they will maintain current rates