Goldman’s Hatzius: No Fed Rate Hike Next Year as Growth Slows

The transcript discusses GDP growth projections for 2022, highlighting a slowdown trend in the latter half of the year. It examines the Federal Reserve's potential response to these economic trends, considering factors like labor market conditions and inflation. The discussion anticipates moderate growth and a return to 2% inflation, with rate hikes expected to start in 2023, depending on economic data and criteria set by the committee.

What is the expected GDP growth rate for Q4 of 2022?

• 3%

• 1.75%

• 2%

• 4%

How might the Federal Reserve react to a slowdown in growth?

• By reducing interest rates

• By immediately increasing interest rates

• By considering labor market gains and growth rates

• By ignoring the slowdown

When is the Federal Reserve likely to announce tapering?

• In the middle of 2022

• At the end of 2023

• In the first quarter of 2022

• At the next meeting

What is the anticipated core PCE inflation rate under the forecast?

• 3%

• 2%

• 1.5%

• 4%

Under what conditions might the Federal Reserve delay rate hikes?

• If inflation exceeds 3%

• If growth is moderate and inflation is around 2%

• If GDP growth is above 4%

• If the labor market is weak