Fed Chair Janet Yellen's Press Conference in Two Minutes

The transcript discusses the Federal Reserve's decision to adjust the federal funds rate by a quarter percentage point, reflecting economic progress towards employment and price stability. It highlights the current low neutral rate and anticipates future gradual rate hikes to sustain economic growth. Despite low unemployment, wage growth and inflation remain subdued. The chair intends to complete their term without discussing future plans with the president.

What was the recent change made to the federal funds rate?

• Decreased by 1/4 percentage point

• Increased by 1/2 percentage point

• Increased by 1/4 percentage point

• Decreased by 1/2 percentage point

Why is the federal funds rate not expected to rise significantly to reach a neutral policy stance?

• Because the economy is declining

• Because the neutral rate is low by historical standards

• Because inflation is high

• Because unemployment is increasing

What is expected to happen to the federal funds rate over the next few years?

• It will remain constant

• It will fluctuate unpredictably

• It will decrease gradually

• It will increase gradually

What is the current state of wage growth and inflation?

• Both are high

• Wage growth is high, inflation is low

• Both are low

• Wage growth is low, inflation is high

What has the chair stated about their term?

• Plans to extend the term

• Intends to resign early

• Intends to serve out the term

• Has discussed future plans with the president