Federal Reserve Set to Shrink Rate Hikes Again as Inflation Slows

The video discusses the Federal Reserve's considerations for adjusting interest rates, focusing on inflation metrics like the PCE deflator. It highlights the potential for a rate hike downshift due to economic indicators and recession concerns. Janet Yellen emphasizes the importance of managing inflation while maintaining a strong labor market. The video concludes with speculation on future rate hikes and market expectations.

What was the Federal Reserve considering changing about their interest rate hikes?

• Increasing from 25 to 50 basis points

• Decreasing from 50 to 25 basis points

• Maintaining a 50 basis point hike

• Eliminating interest rate hikes altogether

Which economic indicator showed no signs of disinflation according to Powell's preferred gauge?

• Retail sales

• Core PCE deflator

• Headline PCE deflator

• Core services

What concern did Janet Yellen express regarding the economy?

• The risk of a recession

• The risk of a housing market crash

• The risk of a strong economic boom

• The risk of deflation

What are markets already pricing in for the second half of the year?

• Stable interest rates

• A series of rate cuts

• Increased inflation

• A series of rate hikes

What is the Federal Reserve's stance on keeping the key rate high?

• They plan to lower it immediately

• They will keep it high until the end of the year

• They have no plans to change it

• They will increase it further