Swonk Sees a Fed Rate Hike Coming in September

The video features Diane, the chief economist at Grant Thornton, discussing the current economic climate. She highlights strong growth, increased consumer and investment activity, and the potential for interest rate hikes. The discussion also covers the impact of trade tariffs on prices, particularly in the third quarter, and the resulting inflationary pressures. Diane emphasizes the importance of understanding the details in the Fed's minutes and the broader economic implications of tariffs on goods and services.

What is the main reason Diane believes a rate hike is likely in September?

• The Fed's acknowledgment of strong economic growth

• A decrease in consumer spending

• A decline in investment activities

• The stability of inflation rates

According to Diane, what is a significant issue the Fed will have to address in the third quarter?

• Stable core inflation rates

• Decreasing job opportunities

• Trade tariffs affecting prices

• Rising oil prices

How are tariffs expected to impact the automotive industry?

• By improving export opportunities

• By causing automakers to raise prices

• By increasing the demand for cars

• By reducing production costs

What does Diane predict about the future of goods inflation?

• It will increase due to tariffs

• It will turn into goods deflation

• It will decrease significantly

• It will remain stable

What type of inflation does Diane expect to see in service prices?

• Medical inflation

• Deflation

• No change

• Decrease in prices