Fed Officials Agreed Rates May Need to Keep Rising

In mid-June, Fed officials observed a strong economy with inflation concerns. They discussed policy firming, considering a 50 or 75 basis point increase to address supply chain and labor issues. Esther George was the only dissenting voice, preferring a smaller increase. Recent weeks have shown inflation easing, but the Fed remains focused on growth and inflation data to guide future policy decisions.

What were the main concerns of Fed officials in mid-June?

• Rising unemployment and low inflation

• COVID concerns, supply-demand imbalances, and inflation

• Decreasing GDP and deflation

• High interest rates and stable inflation

What was the goal of the Fed's policy firming discussed in mid-June?

• To achieve a restrictive stance of policy

• To decrease interest rates

• To increase unemployment

• To stabilize the stock market

What was the Fed's stance on the possibility of a recession due to policy firming?

• They believed it would definitely cause a recession

• They were uncertain about its impact on recession

• They did not discuss a recession being caused by policy firming

• They were confident it would prevent a recession

Who was the only committee member to oppose the 75 basis point increase?

• Ben Bernanke

• Janet Yellen

• Esther George

• Jerome Powell

What recent changes have been observed in inflation trends?

• Inflation has remained stable

• Inflation has become unpredictable

• Inflation has increased significantly

• Inflation has rolled over