Powell Indicates Two or More Fed Hikes by End of Year

The video discusses ongoing high inflation pressures and the Federal Reserve's efforts to reduce inflation to 2% through significant policy rate increases. It highlights the effects of these policies on interest rate-sensitive sectors like housing and investment, and the challenges posed by tighter credit conditions. The Federal Open Market Committee (FOMC) has decided to maintain the federal funds rate while reducing securities holdings, considering the progress in policy tightening and potential economic headwinds. The FOMC's economic projections suggest further interest rate hikes may be necessary.

What is the target inflation rate that the policy aims to achieve?

• 1%

• 3%

• 2%

• 4%

Which sectors are most affected by the policy tightening?

• Housing and Investment

• Retail and Transportation

• Agriculture and Manufacturing

• Technology and Healthcare

What are the expected effects of tighter credit conditions on the economy?

• Increased economic activity

• Higher inflation

• Reduced hiring and economic activity

• Stable economic growth

What decision did the Federal Open Market Committee make regarding the federal funds rate?

• Abolish the rate

• Increase the rate

• Decrease the rate

• Maintain the rate

By the end of the year, how many more times do most committee participants expect interest rates to be raised?

• One or two times

• Two or more times

• Three or four times

• Not at all