Fed Vows Patience on Rates

The transcript discusses the Federal Reserve's decision to be patient in raising interest rates, consistent with previous statements. It highlights new language on inflation and economic conditions, noting modest changes and three dissents in the meeting. The Fed's forward guidance suggests maintaining low rates for a considerable time, especially if inflation remains below the 2% target. The transcript also covers the Fed's economic projections, including expected rate increases, GDP growth, and unemployment rates. The Fed aims to balance differing views and provide flexibility in its policy approach.

What is the Federal Reserve's stance on raising interest rates according to the statement?

• They are uncertain about future rate changes.

• They have decided to lower rates.

• They are patient and consistent with previous language.

• They plan to raise rates immediately.

Which of the following was a concern of Richard Fisher's dissent?

• The Fed's decision to lower interest rates.

• The improvement in US economic performance since October.

• The lack of changes in inflation expectations.

• The consistency of forward guidance with previous statements.

What was Naryana Kocherlakota's main concern regarding the Fed's decision?

• The rapid increase in inflation.

• The credibility of the 2% inflation target.

• The high unemployment rate.

• The consistency of forward guidance.

According to the Fed's projections, what is the expected federal funds rate by the end of 2015?

• 3.625%

• 2.5%

• 1.125%

• 1.375%

What is the projected GDP growth rate for 2015 according to the Fed?

• 5%

• 4%

• 2%

• 3%