Expert reacts after the Federal Reserve raises interest rates to 5.5%

The video discusses the impact of the US economy on the global market, focusing on the Federal Reserve's recent decision to raise interest rates by a quarter percent. It highlights the resilience of the US economy and the moderation of inflation rates. The video compares the economic situations in the US and UK, noting the UK's higher inflation and the need for further rate hikes. It also touches on external factors affecting the UK economy, such as energy prices, and suggests that interest rates may not need to rise as high as some predict.

What was the recent decision made by the Federal Reserve regarding interest rates?

• They raised rates by three-quarters of a percent.

• They kept the rates unchanged.

• They raised rates by a quarter of a percent.

• They decided to lower rates by half a percent.

Why is the Federal Reserve's interest rate decision significant for the global economy?

• It has no impact on the global economy.

• It can lead to a global economic boom.

• Higher US rates can slow down the global economy.

• It only affects the US economy.

What is the Federal Reserve's current view on the possibility of a US recession?

• They believe a recession is unlikely but a slowdown is expected.

• They are unsure about the economic outlook.

• They believe a recession is imminent.

• They see no chance of a recession.

How does the UK's inflation rate compare to that of the US?

• Both countries have the same inflation rate.

• The UK's inflation rate is higher than the US.

• The UK's inflation rate is not mentioned.

• The UK's inflation rate is lower than the US.

What external factor is mentioned as influencing the UK's inflation rate?

• Local food prices

• International energy prices

• Government spending

• Domestic housing market