Fed Leaves Rates Unchanged, Signals No Change in 2020

The video discusses the Federal Reserve's rate projections, indicating no expected rate changes through the 2020 election, with only a few members foreseeing a need for rate increases in the following years. The current monetary policy is deemed appropriate to support economic growth, with a focus on monitoring global developments and inflation. Economic projections show slight changes in unemployment rates, while GDP and inflation forecasts remain stable. The balance sheet direction remains unchanged, with T bill purchases and repo operations continuing into the next year.

What is the consensus on interest rate changes for next year?

• A rate cut is expected.

• Rates will fluctuate significantly.

• No rate change is expected.

• A significant rate increase is expected.

What is the projected long run neutral rate?

• 2.0%

• 1.5%

• 3.0%

• 2.5%

What does the current monetary policy aim to support?

• Decreased inflation

• Sustained economic expansion

• Higher unemployment

• Increased interest rates

What is the expected unemployment rate by the end of next year?

• 4.0%

• 3.5%

• 3.0%

• 4.5%

What is the forecasted GDP growth for 2020?

• 2.5%

• 2.0%

• 3.0%

• 1.5%