Most Fed Officials Backed Continued Gradual Rate Hikes

The transcript discusses the Federal Reserve committee's divided stance on inflation and economic risks as they head into 2018. The dovish group is concerned about weak inflation and supports a rate hike, while the hawkish group worries about unemployment undershoot leading to inflation. Both groups acknowledge potential risks from economic expansion and fiscal stimulus.

What was the main concern of the dovish group within the committee?

• High unemployment rates

• Rising interest rates

• Rapid economic growth

• Weak inflation affecting long-term expectations

What was the majority opinion of the committee regarding rate hikes?

• They supported a rate hike, expecting inflation to return to 2%

• They wanted to decrease rates

• They were undecided about rate hikes

• They opposed any rate hikes

How many rate hikes did the Fed Fund forecasts predict for the next year?

• Two

• Three

• One

• Four

Who were the leaders of the hawkish group concerned about unemployment?

• Janet Yellen and Ben Bernanke

• Eric Rosengren and Loretta Master

• Paul Volcker and William McChesney Martin

• Jerome Powell and Alan Greenspan

What potential risk did the hawkish group discuss that could lead to more aggressive rate increases?

• Decreasing consumer spending

• Economic expansion beyond sustainable levels

• Falling stock markets

• Rising unemployment rates