Higher Interests Rates Are On The Horizon

Federal Reserve Chairman Jerome Powell addressed the economic challenges of reducing inflation, highlighting the impact of higher interest rates and slower growth on households and businesses. Despite a slight decrease in inflation, the Fed remains focused on achieving its 2% target. Future rate hikes will depend on upcoming economic data, including the monthly jobs report.

What is one of the consequences of higher interest rates mentioned by Jerome Powell?

• Increased household savings

• Pain to households and businesses

• Higher employment rates

• Lower government spending

What did the PCE report indicate about inflation in July?

• Inflation decreased to 5.8%

• Inflation decreased to 6.3%

• Inflation remained the same as June

• Inflation increased to 7.0%

Why is the Fed not satisfied with the July inflation improvement?

• The PCE report was inaccurate

• It was only a single month's data

• The consumer price index was higher

• The inflation rate increased

What is the Fed's target inflation rate?

• 5%

• 4%

• 2%

• 3%

What upcoming report will influence the Fed's decision on future rate hikes?

• Quarterly GDP report

• Monthly jobs report

• Annual budget report

• Weekly stock market analysis