Citi's Bitterly Says US Economy Slowing, Fed's 'Medicine' Is Working

The video discusses the Federal Reserve's current economic outlook, highlighting limited progress in key metrics like unemployment and inflation. Despite this, the Fed has reduced its rate hike to 25 basis points, signaling a potential end to hikes. The discussion includes differing views on whether the economy is slowing, with evidence of contraction in retail and housing markets. The video also speculates on future Fed actions, emphasizing the importance of upcoming data in shaping decisions.

What is the Fed's current stance on economic activity, according to the first section?

• The economy is booming, and no action is needed.

• The economy is slowing, and the Fed is stepping up its actions.

• The economy shows limited progress, and the Fed is cautiously reducing its rate hikes.

• The economy is stable, and the Fed is maintaining its current policy.

Which of the following is NOT mentioned as a sign of economic slowdown in the second section?

• Contraction in goods and services

• Inventory bloat

• Increase in retail sales

• Drop in new home sales

What is the main reason the Fed's policies are considered effective, as discussed in the second section?

• Increase in housing prices

• Visible signs of economic slowdown

• Significant reduction in inflation

• Immediate improvement in employment rates

What is the Fed's base case for future rate hikes, according to the final section?

• A reduction in rates

• A 25 basis point hike

• A 50 basis point hike

• No further rate hikes

What could influence the Fed's future policy decisions, as mentioned in the final section?

• A sudden economic boom

• Political pressure

• New data trends emerging in March

• Immediate changes in employment data