Fed Sees No Rate Hikes in 2019, Plans End to Balance Sheet Drawdown in September

The video discusses the Federal Reserve's decision to maintain the interest rate for 2019, with a potential rate increase in 2020. Economic growth forecasts have been revised downward, with growth expected to slow in the coming years. Unemployment is projected to rise slightly, while inflation is expected to decrease. The Fed plans to stop shrinking its balance sheet by September and will reinvest in Treasurys. The Fed aims to reassure investors that they are in control, but questions remain about whether they have exceeded market expectations.

What decision did the Federal Reserve make regarding the target rate for 2019?

• Eliminate the rate

• Increase the rate

• Decrease the rate

• Maintain the rate

What is the projected growth rate for the economy in 2020 according to the transcript?

• 1.9%

• 2.3%

• 3.0%

• 2.1%

Which economic indicator showed a slowdown according to recent data?

• Labor market growth

• Household spending

• Unemployment rate

• Currency demand

What change did the Federal Reserve announce regarding its balance sheet in May?

• Sell all mortgage-backed securities

• Reduce the monthly runoff cap

• Stop reinvesting in Treasurys

• Increase the monthly runoff cap

What is the Federal Reserve's plan for its portfolio size after the runoff ends?

• Increase the portfolio size

• Hold the size constant

• Sell all assets

• Reduce the portfolio size