Fed Ready to Move But Will Pause, Economist Swonk Says

The transcript discusses the Federal Reserve's potential actions regarding interest rate hikes and the economic conditions that may necessitate a recession to control inflation. It highlights consumer spending trends, noting a decline in confidence and spending despite stable wages. The impact of credit tightening on small businesses and the broader economy is also examined, with a focus on the potential for a recession and the challenges of achieving a soft landing.

What is the Federal Reserve's stance on interest rate hikes if additional tightening is not observed?

• They will maintain the current rate.

• They will decrease rates by half a percent.

• They will eliminate rate hikes altogether.

• They will increase rates by half a percent.

According to historical trends, what is often necessary to bring inflation down to the Fed's target?

• A period of economic boom

• Stable interest rates

• A recession

• Increased consumer spending

What is the expected unemployment rate that might indicate a recession according to the Fed's forecast?

• 6.0%

• 5.2%

• 4.6%

• 3.5%

How have consumer spending patterns changed in the first quarter according to the transcript?

• Spending increased steadily each month.

• Spending was strongest in January and then declined.

• Spending remained constant throughout the quarter.

• Spending decreased in January and increased in subsequent months.

What is the impact of credit tightening on small businesses as mentioned in the transcript?

• It has no significant impact.

• It benefits small businesses by increasing demand.

• It poses challenges by reducing job openings.

• It leads to increased investment in small businesses.