Mester Says Rate Hikes All Depend on Inflation

The video discusses the current trends in inflation, highlighting evidence that suggests inflation is decreasing. It explains how this trend could influence the pace of rate increases, suggesting that if inflation continues to moderate, rate increases may slow. Conversely, if inflation does not moderate, a faster pace of rate increases might be necessary.

What does the monthly reading on inflation provide?

• Evidence of economic growth

• Compelling evidence on inflation

• Data on employment rates

• Information on stock market trends

If inflation is decreasing, what might happen to the pace of rate increases?

• It could remain the same

• It could accelerate

• It could stop completely

• It could slow down

What is a potential consequence if inflation does not moderate?

• A slower pace of rate increases

• A decrease in rate increases

• A faster pace of rate increases

• No change in rate increases

What is the relationship between inflation moderation and rate increases?

• Moderation leads to faster rate increases

• Moderation leads to slower rate increases

• Moderation has no effect on rate increases

• Moderation stops rate increases

What might be necessary if inflation fails to moderate?

• Slower rate increases

• Faster rate increases

• No rate increases

• Decreased rate increases