Fed to End Tapering Earlier, Signals Three Hikes in 2022

The video discusses the Federal Reserve's decision to increase the pace of tapering to $30 billion a month, with $20 billion in Treasurys and $10 billion in mortgages. The Fed has raised its inflation forecast and removed the term 'transitory' from its statements. They anticipate three rate hikes in 2022, three more in 2023, and nearly three in 2024. The Fed highlights ongoing supply and demand imbalances due to the pandemic and notes that sectors affected by COVID-19 are improving but still impacted. The committee expects to maintain the target range until labor market conditions align with maximum employment. Progress in vaccinations and easing supply constraints are expected to boost economic activity, but risks from new virus variants remain.

What is the new monthly pace of tapering set by the Federal Reserve?

• $40 billion

• $30 billion

• $20 billion

• $10 billion

By what year does the Federal Reserve expect the PCE inflation to drop to 2.1%?

• 2024

• 2025

• 2023

• 2022

How many rate hikes does the Federal Reserve anticipate in 2023?

• Two

• One

• Four

• Three

What term has the Federal Reserve replaced when discussing inflation?

• Temporary

• Momentary

• Short-term

• Transitory

What factors are expected to support continued economic growth according to the committee?

• Higher interest rates

• Reduced consumer spending

• Progress on vaccinations and easing supply constraints

• Increased government spending