Fed Likely to Keep 25 Bps Pace of Rate Hikes: Kroszner

The transcript discusses the uncertainty in economic data and the importance of keeping options open in decision-making due to global risks. It highlights the potential for rate hikes and the need for flexibility in response to inflation and labor market changes. The base case is a gradual rate increase with a cautious approach to future economic conditions.

What is the main reason for keeping options open in economic decision-making?

• To ensure a fixed plan is followed

• To adapt to unexpected economic data

• To avoid any changes in interest rates

• To focus solely on inflation rates

Which global regions are mentioned as potential sources of risk?

• South America and Africa

• North America and Australia

• Europe and Antarctica

• Ukraine, Asia, and the Middle East

Why is it important to keep options open in the face of global risks?

• To maintain a fixed interest rate

• To ignore economic data

• To quickly adapt to any disruptions

• To ensure a traditional plan is followed

What might cause a more rapid change in interest rates?

• A spike in inflation or stronger labor market

• A stable economic environment

• A decrease in global risks

• A decline in economic data

What is the base case for interest rate changes according to the transcript?

• A decrease in interest rates

• A 25 basis point increase over several meetings

• No change in interest rates

• A 50 basis point increase