Powell Says It Was the Appropriate Time to Remove Forward Guidance

The video discusses the Federal Reserve's decision to raise the federal funds rate by a quarter percentage point, bringing it to 1.75% to 2%. It explains changes in the policy statement, reflecting the ongoing policy normalization. The removal of certain forward guidance language is highlighted, indicating the economy's strengthening. The video emphasizes a gradual approach to rate increases to sustain economic expansion, while acknowledging risks of raising rates too slowly or too rapidly.

What is the committee's expectation regarding the federal funds rate over the next year?

What risks are associated with raising interest rates too slowly or too rapidly?