Powell Says Fed Is Prepared to Raise Rates Further

The video discusses the goal of reducing inflation to 2% and the significant policy tightening over the past year. Despite a decrease from its peak, inflation remains high, prompting readiness to raise rates further if needed. Economic indicators like GDP growth and consumer spending have exceeded expectations, while the housing sector shows signs of recovery. Persistent above-trend growth could risk inflation progress, necessitating further monetary policy tightening.

What is the primary goal mentioned in the first section regarding inflation?

• To eliminate inflation completely

• To reduce inflation to 2%

• To maintain inflation at 3%

• To increase inflation to 5%

What action might be taken if inflation does not move sustainably downward?

• Increase government subsidies

• Decrease interest rates

• Raise rates further

• Implement tax cuts

What economic indicator has shown unexpected strength according to the second section?

• Unemployment rate

• Stock market performance

• GDP growth

• Interest rates

Which sector is showing signs of recovery after a period of deceleration?

• Retail

• Housing

• Manufacturing

• Technology

What could persistent above-trend growth potentially affect, as mentioned in the third section?

• Employment rates

• Progress on inflation

• Government spending

• Trade balance