Fed Raises Rates to Highest Level in 22 Years

The transcript discusses the current federal funds rate, which is the highest in 22 years. The Federal Reserve's statement indicates a shift from pausing to assessing additional information for monetary policy. The economic assessment remains largely unchanged, with moderate activity growth, robust job gains, low unemployment, and elevated inflation. Tighter credit conditions may impact economic activity, hiring, and inflation, but the extent is uncertain. The committee remains attentive to inflation risks, with no change to quantitative tightening, and the decision was unanimous.

What is the current range of the federal funds rate as mentioned in the video?

• 3% to 3.5%

• 4% to 4.5%

• 5% to 5.5%

• 6% to 6.5%

What phrase did the Fed officials remove from their statement?

• Enhancing economic growth

• Increasing interest rates

• Pausing to assess the state of the economy

• Reducing inflation

What does the Fed's future guidance indicate?

• Permanent rate increase

• Immediate rate cuts

• Potential for future rate adjustments

• No further rate changes

Which economic indicators remain robust according to the Fed's assessment?

• Government spending and imports

• Consumer spending and exports

• Stock market and housing prices

• Job gains and unemployment

What is the Fed's stance on inflation risks?

• They will address them next year

• They plan to ignore them

• They are highly attentive

• They are not concerned