Fed's Powell Says the Case for Raising Rates Has Weakened Somewhat

The transcript discusses the FOMC's decision to adopt a patient approach to future policy changes, considering global economic developments and muted inflation pressures. Despite a stable economic outlook with strong labor market conditions and inflation near 2%, potential risks and diminished inflation threats have led to a cautious stance. The FOMC aims to support the economy by evaluating the outlook before making policy adjustments, noting that financial imbalances have receded and inflation expectations remain stable.

What is the main reason for the uncertainty in rate increases mentioned in the first section?

• Global economic and financial developments

• High inflation rates

• Strong labor market conditions

• Lack of data on job creation

According to the second section, what is the current inflation rate considered likely?

• 4%

• 1%

• 2%

• 3%

What has weakened the case for raising rates as discussed in the second section?

• Increased job creation

• Diminished risk of high inflation

• Stronger global economy

• Higher oil prices

What recent trend is likely to push headline inflation lower, as mentioned in the final section?

• Rising interest rates

• Increase in oil prices

• Drop in oil prices

• Stable job market

How have financial market measures of inflation compensation changed recently?

• They have become unpredictable

• They have remained stable

• They have increased

• They have moved lower