Powell Says Fed Doesn't See a Strong Case for a Rate Move Either Way

The transcript discusses the Federal Reserve's inflation objectives and current policy stance, noting that inflation, including core inflation, was close to 2% in 2018. However, both headline and core inflation were unexpectedly soft in the first quarter. The committee is concerned about persistent inflation deviations from the 2% target, which are not transient. Factors like portfolio management and apparel prices are considered. The committee would respond to persistent inflation trends in setting policy.

What was the inflation rate, including core inflation, for much of 2018?

• Below 1%

• Close to 2%

• Exactly 2.5%

• Above 3%

What does the committee consider when inflation runs persistently above or below 2%?

• It is celebrated as a sign of economic growth.

• It is seen as a failure of monetary policy.

• It is ignored as a temporary fluctuation.

• It is a concern and considered in policy setting.

What factors are mentioned as reasons for the unexpected decrease in core inflation?

• Rising housing costs

• Increased oil prices

• Portfolio management and apparel prices

• Higher interest rates

What is the significance of the trimmed mean measures of inflation?

• They showed a significant decrease.

• They remained stable, indicating less concern.

• They are irrelevant to policy decisions.

• They increased sharply.

What would the committee do if inflation persistently runs below the target?

• Reduce government spending.

• Increase interest rates immediately.

• Consider it in setting future policy.

• Ignore it as a temporary issue.