Kashkari Isn't Ready to Say Fed Is Done Raising Rates

The video discusses the current state of interest rates, indicating that while there are positive signs, it's too early to conclude that rate hikes are over. The focus is on monitoring data to decide on future rate cuts, given that core inflation remains high. The video also explores the potential for future adjustments to nominal rates to maintain policy stability, depending on economic data. It highlights that if inflation decreases while nominal rates stay the same, real rates effectively increase.

What is the current stance on raising interest rates according to the speaker?

• Rates are definitely going to be cut soon.

• There are positive signs, but it's too early to conclude that rate hikes are over.

• The speaker is confident that rates will not change.

• Rates have already been cut.

Why does the speaker believe that cutting rates is not imminent?

• Because the stock market is unstable.

• Because core inflation is still around 4%, which is twice the target.

• Because the economy is in a recession.

• Because unemployment rates are too high.

What is the target inflation rate mentioned by the speaker?

• 3%

• 4%

• 2%

• 1%

What might prompt a change in nominal rates in the future?

• A sudden increase in unemployment.

• A change in government policy.

• A stable stock market.

• Inflation data indicating a need to maintain stable monetary policy.

According to the speaker, what is the relationship between nominal rates and real rates if inflation falls?

• Real rates increase.

• Real rates remain the same.

• Nominal rates automatically adjust.

• Real rates decrease.