Powell Says Fed to Offer Less 'Clear Guidance' on Rates

The transcript discusses the current state of inflation and the policy measures being considered to address it. It highlights the rapid rate hikes and their potential impact on the economy, suggesting that more tightening may be needed. The committee's goal is to reach a moderately restrictive policy level, with projections for interest rates provided. The decision-making process is now based on meeting-by-meeting data analysis, moving away from previous clear guidance.

What is the primary goal of the current policy stance regarding inflation?

• To eliminate inflation entirely

• To reduce inflation to 2%

• To maintain inflation at 3%

• To increase inflation to 4%

What does the committee believe is necessary to achieve a moderately restrictive policy level?

• Reducing interest rates

• Increasing interest rates

• Maintaining current interest rates

• Eliminating interest rates

What was the median projection for the interest rate by the end of the year?

• Between 2% and 2.5%

• Between 3% and 3.5%

• Between 4% and 4.5%

• Between 5% and 5.5%

How does the committee plan to make future policy decisions?

• By setting a fixed long-term plan

• By making decisions annually

• By making decisions meeting by meeting

• By following public opinion

Why is the committee avoiding providing clear guidance on future policy?

• To confuse the public

• To maintain flexibility in decision-making

• To reduce transparency

• To increase inflation