Powell Says Rates Unlikely to Rise Before Start of 2022

The transcript discusses the Federal Reserve's stance on interest rates, emphasizing that rates will remain unchanged until three economic conditions are met: a complete labor market recovery, inflation reaching 2% sustainably, and inflation running moderately above 2% for some time. The speaker highlights that projections are individual assessments and not committee forecasts, cautioning against over-reliance on the dot plot. It is deemed highly unlikely that interest rates will increase before 2022, focusing instead on economic outcomes.

What are the three conditions the Federal Reserve requires before considering an interest rate increase?

• Complete labor market recovery, inflation at 2%, inflation above 2% for some time

• Unemployment below 5%, GDP growth above 3%, inflation at 1%

• Stock market stability, housing market growth, inflation at 3%

• Interest rates at 0%, inflation at 1%, GDP growth at 2%

How often do FOMC members submit their individual interest rate projections?

• Quarterly

• Annually

• Monthly

• Biannually

What is the 'dot plot' in the context of the Federal Reserve's interest rate policy?

• A chart showing GDP growth

• A graphical representation of inflation rates

• A summary of economic projections by FOMC members

• A list of stock market indices

According to the speaker, when do most FOMC members expect interest rates to rise?

• In 2025

• In 2024

• In 2023

• Before 2022

What is the speaker's view on the likelihood of interest rate changes before 2022?

• Somewhat likely

• Highly likely

• Certain

• Unlikely