The Real-Life Impact Of The Federal Reserve Hike

The video discusses a significant increase in federal interest rates from 0-0.25% to 2.25-2.5%, aiming to curb inflation by reducing demand. This hike impacts the housing market, giving remaining buyers more negotiation power. Future rate hikes are anticipated, but the Federal Reserve may slow the pace, which has positively influenced the stock market.

What was the initial range of interest rates before the recent hikes?

• 0 to 0.25%

• 1 to 1.25%

• 2 to 2.25%

• 3 to 3.25%

How does the Federal Reserve aim to reduce inflation with the interest rate hike?

• By lowering taxes

• By printing more money

• By decreasing demand through higher borrowing costs

• By increasing the supply of goods

What is one potential benefit of higher interest rates on everyday goods?

• They become more expensive

• They become less available

• They become more luxurious

• They become cheaper in the long run

How have higher interest rates affected the housing market?

• Given more power to remaining buyers

• Made houses cheaper

• Increased the number of first-time buyers

• Decreased negotiation power for buyers

What did Carol Powell indicate about future interest rate hikes?

• Interest rates will decrease

• There will be no more hikes

• Another substantial hike may be necessary

• The hikes will be smaller