Fed's Key Question Is How Fast to Raise Rates: Reinhart

The transcript discusses the Federal Reserve's forecasting accuracy, interest rate hikes, and the dual mandate of maximum employment and stable prices. It explores potential future rate increases, the impact of political changes on the Fed, and key questions facing the Fed, such as the pace of rate increases. The discussion also touches on inflation expectations and the influence of political appointments on the Fed's decision-making process.

What is the Federal Reserve's current achievement according to the transcript?

• Maximum sustainable employment and stable prices

• Reducing national debt

• Increasing GDP growth

• Lowering interest rates

What is the main question regarding future interest rate settings?

• Whether rates should be abolished

• Whether rates should remain the same

• Whether rates should be higher

• Whether rates should be lower

What is the Federal Reserve's dual mandate?

• Full employment and price stability

• Economic growth and low taxes

• High employment and low inflation

• Stable currency and trade balance

What is Janet Yellen's experiment related to?

• Increasing interest rates rapidly

• Increasing government spending

• Reducing inflation to zero

• Allowing a hot labor market to see if it leads to higher employment

What could influence the Federal Reserve's stance in 2017 and 2018?

• International trade agreements

• Technological advancements

• New appointments by the President

• Changes in the stock market

What authority has not been exercised by the Obama administration according to the transcript?

• Appointing a vice chair for supervision and regulation

• Increasing interest rates

• Reducing unemployment

• Implementing new tax policies

What is the potential impact of appointing a successor to Janet Yellen?

• It would have no impact

• It would increase unemployment

• It could lead to a shift in the FOMC's views

• It would decrease inflation