Powell Says He Expects Economic Growth to Moderate in 2019

In 2018, the FOMC predicted strong economic growth, leading to a decrease in unemployment and a rise in inflation to 2%. The committee planned gradual interest rate increases. However, the economy performed better than expected, resulting in four rate hikes. For 2019, growth is expected to moderate, with projections showing a slight decrease in growth and inflation. The federal funds rate is anticipated to be in a range where opinions on policy stance may vary. The FOMC will continue to monitor economic indicators to ensure policy supports economic expansion with stable inflation.

What was the FOMC's strategy to sustain economic expansion with inflation near 2% in 2018?

• Implement tax cuts

• Decrease interest rates

• Gradually withdraw economic support

• Increase government spending

How did the FOMC respond to the stronger-than-expected economy in 2018?

• Paused interest rate hikes

• Increased interest rates more than planned

• Reduced interest rates

• Maintained the same interest rate

What is a key characteristic of the FOMC's policy approach?

• Fixed policy regardless of data

• Data-dependent adjustments

• Annual policy changes

• Policy changes every five years

What was the projected growth rate for 2019 according to the FOMC?

• 2.3%

• 1.5%

• 3.0%

• 4.5%

How did the FOMC view the federal funds rate in relation to the longer run normal rate after the 2018 adjustments?

• Below the normal rate

• At the normal rate

• Above the normal rate

• Unrelated to the normal rate