Why federal interest rates likely won't drop anytime soon

Why federal interest rates likely won't drop anytime soon

Assessment

Interactive Video

Business

University

Hard

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The video discusses the impact of interest rates on big purchases, highlighting that Federal Reserve rate cuts do not directly translate to lower mortgage rates. It explains the connection between mortgage rates and the 10-year Treasury yield. The video also explores economic predictions under a Trump presidency, including potential inflation and fewer rate cuts. Finally, it examines Trump's possible influence on the Federal Reserve, noting his campaign promises for more involvement.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary factor influencing the 30-year mortgage rate, despite Federal Reserve interest rate cuts?

The stock market performance

Local bank policies

The 10-year Treasury yield

The Federal Reserve's decisions

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Jerome Powell's current stance on the need for further interest rate cuts?

He has not commented on the matter

He believes immediate cuts are necessary

He sees no urgent need for cuts

He plans to increase rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a potential economic impact of a Trump presidency mentioned in the transcript?

Stronger international trade agreements

Decreased inflation

Higher tariffs and tax cuts

Increased federal workforce

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How have American presidents traditionally interacted with the Federal Reserve?

They have allowed it to act independently

They have frequently replaced its chair

They have ignored its existence

They have heavily influenced its decisions

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What action has President-elect Trump threatened regarding the Federal Reserve?

To merge it with another institution

To fire the Federal Reserve chair

To increase its budget

To reduce its interest rates