Powell Still Sees Risks of Inflation to the Upside

The transcript discusses the balance of risks in monetary policy, focusing on reaching a sufficiently restrictive funds rate. It highlights the progress made from low interest rates to a more balanced state, while acknowledging ongoing inflation risks. The importance of core inflation data is emphasized, and the strategy of moderating the pace of policy changes is explained, considering the lag in financial conditions' effects.

What has been the trend in interest rates according to the speaker?

• They have remained constant at zero percentage points.

• They have fluctuated between zero and five percentage points.

• They have increased from zero to five percentage points.

• They have decreased from five to zero percentage points.

What does the speaker identify as a better indicator of overall inflation trends?

• Headline inflation

• Core inflation

• Producer Price Index

• Consumer Price Index

What is the speaker's view on the current state of inflation?

• Inflation is under control and decreasing.

• Inflation risks are still on the upside.

• Inflation is stable with no risks.

• Inflation is decreasing rapidly.

Why does the speaker believe it is reasonable to pause interest rate hikes?

• Because inflation has been completely controlled.

• Due to the immediate effects of financial tightening.

• Because the economy is in a recession.

• To allow time for the effects of past tightening to manifest.

What does the speaker suggest is necessary to judge the sufficiency of monetary policy?

• A decrease in interest rates

• An increase in inflation

• More data over time

• Immediate results from policy changes