Fed's Powell Says Inflation Is Moving Closer to Our Goal

The Federal Reserve is focused on its dual mandate of maximum employment and stable prices. Recent economic indicators show strong GDP growth and a solid labor market, though inflation remains slightly above the 2% target. The Fed has lowered the policy interest rate and continues to adjust its monetary policy to maintain economic strength. Future policy adjustments will depend on economic data and risks. The Fed remains committed to its goals, understanding the impact of its actions on the American public.

What are the two main goals of the Federal Reserve's dual mandate?

• Strong housing market and low interest rates

• Increased consumer spending and reduced inflation

• High GDP growth and low unemployment

• Maximum employment and stable prices

Which sector has shown weakness despite overall economic growth?

• Labor market

• Investment in equipment

• Housing

• Consumer spending

How has the labor market changed compared to 2019?

• It has become a source of inflationary pressure

• It has remained the same

• It has become tighter

• It is less tight

What action did the Federal Open Market Committee take to support economic goals?

• Increased the federal funds rate

• Increased the policy interest rate

• Lowered the policy interest rate

• Stopped reducing securities holdings

What is the projected federal funds rate at the end of next year?

• 3.9%

• 2.5%

• 4.2%

• 3.4%

What is the expected inflation rate for next year according to the SCP?

• 2.5%

• 2.4%

• 3.0%

• 2.0%

What is the purpose of the technical adjustments to the reverse repo facility?

• To change the stance of monetary policy

• To align with the bottom of the target range for the federal funds rate

• To increase inflation

• To decrease employment