Powell Says Economy's Health Warrants Rate Hike

The transcript discusses the rationale behind interest rate decisions, focusing on achieving a 2% inflation target without overshooting. It highlights the economic health of 2018, marked by growth above trend, decreasing unemployment, and positive forecasts. The decision to move to a neutral policy is based on these factors, acknowledging potential risks.

Why might it be questioned to raise interest rates if 2% inflation hasn't been achieved?

• Because it implies a symmetrical target isn't met

• Because it would decrease economic growth

• Because it could lead to deflation

• Because it would increase unemployment

What economic indicators were highlighted for 2018?

• Stagnant growth and rising inflation

• Growth below trend and stable unemployment

• Decreasing inflation and increasing unemployment

• Growth above trend and dropping unemployment

What was the inflation rate moving towards in 2018?

• 1%

• 2%

• 4%

• 3%

What stance did the policy move to, given the healthy economy?

• Aggressive

• Neutral

• Restrictive

• Accommodative

What was considered when deciding the policy stance?

• The global economic conditions

• The risks associated with the decision

• Only the unemployment rate

• Only the inflation rate