Fed Hikes Rates Again by 75 Basis Points

The transcript discusses the Federal Reserve's decision to adjust the lending rate and update its statement. The committee anticipates ongoing increases in the target range to achieve a restrictive monetary policy stance, aiming to return inflation to 2% over time. They will consider cumulative policy tightening, economic activity, and financial developments in future rate decisions. The economic assessment remains unchanged, highlighting modest growth, robust job gains, and elevated inflation. Russia's war is noted for its impact on inflation and global economic activity. The decision was unanimous, with no mention of the balance sheet.

What was the new range set for the lending rate?

• 5 to 5.5 percent

• 4 to 4.5 percent

• 3 to 3.45 percent

• 2 to 2.5 percent

Why did the committee adjust their pledge regarding the target range?

• To increase economic growth

• To ensure a restrictive monetary policy

• To decrease unemployment

• To stabilize the stock market

What is the committee's target inflation rate over time?

• 4%

• 1%

• 3%

• 2%

What factors will the committee consider for future increases in the target range?

• Political stability

• Cumulative tightening of monetary policy

• Public opinion

• Technological advancements

What remained unchanged in the economic assessment from September?

• High unemployment

• Modest growth and robust job gains

• Decreasing inflation

• Increased exports