Powell: Fed Prepared to Increase Pace of Hikes If Needed

The video discusses the ongoing efforts to reduce inflation to 2%, highlighting the challenges and the need for a potentially bumpy process. It examines recent economic data suggesting higher interest rates than previously anticipated. The importance of maintaining a restrictive monetary policy to restore price stability is emphasized, along with the goal of achieving maximum employment and stable prices. The video cautions against prematurely loosening policy and stresses the commitment to staying the course until objectives are met.

What is the target inflation rate mentioned in the video?

• 4%

• 2%

• 1%

• 3%

What does the stronger-than-expected economic data suggest about interest rates?

• They will decrease.

• They will remain the same.

• They will be higher than anticipated.

• They will be lower than anticipated.

What might be required if the data indicates faster tightening is needed?

• Increase in the pace of rate hikes

• Maintaining current interest rates

• Reducing inflation target

• Decrease in interest rates

Why is restoring price stability considered essential?

• To reduce economic growth

• To achieve maximum employment and stable prices

• To increase inflation

• To decrease employment

What does the historical record caution against?

• Increasing interest rates

• Prematurely loosening policy

• Maintaining a restrictive stance

• Reducing inflation target