Powell Says FOMC to Take Data-Dependent Approach on Future Hikes

The Federal Reserve is committed to promoting maximum employment and stable prices. Recent monetary policy actions include raising interest rates and reducing securities holdings to combat high inflation. Economic indicators show moderate growth, a tight labor market, and inflation above the 2% goal. The Fed remains focused on data-driven decisions to achieve its objectives, acknowledging the challenges posed by high inflation and tighter credit conditions. The Fed's actions aim to restore price stability, essential for long-term economic health.

What is the primary responsibility of the Federal Reserve according to the transcript?

• To control government spending

• To ensure price stability

• To manage international trade

• To regulate the stock market

Which sector has shown some improvement but remains below last year's levels?

• Technology

• Housing

• Manufacturing

• Retail

What is the Federal Reserve's long-term inflation goal?

• 1%

• 2%

• 3%

• 4%

How much did the committee raise the federal funds rate in the recent meeting?

• 1/2 percentage point

• 1/4 percentage point

• 3/4 percentage point

• 1 percentage point

What is one of the effects of the Federal Reserve's policy tightening?

• Increased consumer spending

• Higher inflation rates

• Improved international trade

• Reduced demand in interest rate sensitive sectors

What is likely required to reduce inflation according to the transcript?

• Increased government spending

• A period of below trend growth

• Higher interest rates

• More international trade

What does the Federal Reserve aim to achieve in the long run?

• Higher stock market returns

• Lower international trade barriers

• Maximum employment and stable prices

• Increased government revenue