Fed's Powell Says Policy Is in a Good Place and Likely to Remain Appropriate

The transcript discusses the current economic outlook, focusing on a strong labor market and inflation near the 2% objective. It highlights changes in interest rate paths due to global growth weaknesses and trade risks. The Federal Reserve has adjusted the federal funds rate multiple times to support the economy. The effects of these monetary policies will be realized over time, and the current stance is deemed appropriate as long as economic data aligns with expectations. Future policy actions will be monitored, and adjustments will be made if necessary, emphasizing that policy is not on a preset course.

What factors have influenced the change in the path of interest rates over the past year?

• Increased consumer spending

• Strong domestic growth

• High inflation rates

• Weakness in global growth and trade developments

How much was the federal funds rate reduced in both July and September?

• 1/2 percentage point

• 1/4 percentage point

• 3/4 percentage point

• 1 percentage point

What is the current range for the federal funds rate after the recent adjustments?

• 2.5% to 3%

• 1.5% to 1.75%

• 1% to 1.5%

• 2% to 2.5%

What is the expected impact of the policy adjustments on the economy?

• Effects realized over time

• No impact on the job market

• Immediate effects on economic growth

• Decrease in inflation immediately

What is the stance of monetary policy regarding future developments?

• Policy will change only if inflation rises

• Policy will remain the same regardless of economic changes

• Policy is fixed and unchangeable

• Policy is flexible and will respond to new developments