Powell: We're Moving Slowly as We Approach 2% Inflation

The transcript discusses changes in economic forecasts, highlighting stronger-than-expected growth and lower unemployment rates. It emphasizes the challenges and uncertainties in economic forecasting, particularly in predicting inflation trends. Recent data shows significant declines in core inflation, mainly in goods and housing services. The discussion also covers the rationale behind current monetary policy decisions, stressing the need for careful adjustments as inflation approaches the target rate.

What has been a significant factor in requiring higher interest rates according to the first section?

• Lower unemployment rates

• Stronger-than-expected economic growth

• Decline in housing market

• Increased energy prices

Which sector has shown significant declines in core inflation as mentioned in the second section?

• Goods

• Education

• Technology

• Healthcare

What is a major reason for the recent decrease in headline inflation?

• Higher interest rates

• Lower energy prices

• Improved labor market conditions

• Increased consumer spending

What is the current approach to monetary policy as inflation nears the target rate?

• Rapid rate increases

• Slower rate adjustments

• Maintaining current rates

• Immediate rate cuts

What is the main risk mentioned in the third section as the monetary policy approaches the target inflation rate?

• Over-tightening

• Under-tightening

• Both over-tightening and under-tightening

• No significant risks