Fed's Mester: Rates Need to Move Up 'Somewhat Further'

Fed's Mester: Rates Need to Move Up 'Somewhat Further'

Assessment

Interactive Video

Business

University

Hard

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The video discusses the shift in monetary policy from an accommodative to a restrictive stance, highlighting the effects of this transition on the economy. It explains how the current tightening phase is expected to moderate demand and ease inflation pressures, although reaching the 2% inflation target will take time. The economy shows unexpected strength, but core inflation remains high, necessitating further rate increases and careful monitoring.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current phase of monetary policy according to the speaker?

Middle of the tightening phase

Beginning of the tightening phase

End of the tightening phase

No change in monetary policy

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the speaker expect the existing tightening measures to affect the economy?

Increase inflation

Have no effect on demand

Decrease demand in product and labor markets

Increase demand in product and labor markets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the speaker's expectation for inflation this year?

Inflation will reach the 2% goal quickly

Inflation will remain the same

Inflation will decrease but not reach the 2% goal

Inflation will increase significantly

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the trend in core inflation according to the speaker?

Core inflation has been decreasing rapidly

Core inflation has stalled

Core inflation has been fluctuating

Core inflation has been increasing

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the speaker suggest about the funds rate to ensure inflation returns to the target?

Decrease the funds rate

Keep the funds rate unchanged

Increase the funds rate and hold it

Eliminate the funds rate