Powell: Fed Officials Don't Expect Rate Cuts This Year

The transcript discusses the economic outlook, highlighting expectations of slow growth and no rate cuts this year. It emphasizes the uncertainty in the economic path and how policy will adapt to actual developments. The Federal Reserve's approach to monetary policy is explored, focusing on the role of credit conditions as a substitute for rate hikes to control inflation, aiming to bring it down to 2% over time.

What is the expected trend for inflation according to the participants?

• Gradual decrease

• Sudden drop

• Rapid increase

• Stable with no change

Why are rate cuts not anticipated this year?

• Because of rapid economic growth

• Due to gradual inflation decrease

• Because of high unemployment rates

• Due to stable supply and demand

What does the 5.1% consensus relate to in the context of monetary policy?

• Expected interest rate

• Expected GDP growth

• Expected inflation rate

• Expected unemployment rate

How does the Federal Reserve view the role of credit conditions in monetary policy?

• As a reason for rate cuts

• As a substitute for rate hikes

• As irrelevant to rate hikes

• As a minor factor

What is the Federal Reserve's target inflation rate over time?

• 1%

• 2%

• 4%

• 3%