Powell Says Fed Expects to Raise Rates in March

The transcript discusses the economic recovery, highlighting progress in vaccinations and the labor market's tight conditions. It addresses inflation trends, supply constraints, and the Federal Reserve's monetary policy adjustments to manage inflation and support economic growth. The Federal Reserve plans to raise the federal funds rate and reduce its balance sheet. The transcript also covers the impact of the Ukraine invasion on the economy and the importance of maintaining public trust through new ethics rules.

What factors contributed to the economic recovery last year?

• Reduction in global trade barriers

• Decrease in oil prices

• Increased government spending and tax cuts

• Progress on vaccinations and reopening of the economy

How did the labor market perform in 2021?

• Job gains were minimal in January

• Payroll employment rose by 6.7 million

• Unemployment rate increased to 6%

• Employment decreased by 6.7 million

What is one of the main causes of the recent inflation increase?

• Strong demand and supply bottlenecks

• Decrease in consumer demand

• Reduction in government spending

• Increase in global oil supply

What is the Federal Reserve's primary tool for adjusting monetary policy?

• Government spending

• Trade tariffs

• Federal funds rate

• Tax rate adjustments

What is the Federal Reserve's approach to reducing its balance sheet?

• Selling assets immediately

• Gradual reduction through reinvestment adjustments

• Increasing asset purchases

• Halting all monetary policy actions

How does the Federal Reserve plan to handle the uncertainty caused by geopolitical events?

• By maintaining a fixed monetary policy

• By increasing interest rates sharply

• By ignoring international developments

• By being flexible and responsive to data

What new measures has the Federal Reserve implemented to prevent conflicts of interest?

• Reducing transparency in decision-making

• Increased salaries for officials

• New ethics rules for investment restrictions

• Allowing more freedom in investments