Fed's Rosengren Says Four Hikes May Be Needed in 2017

The transcript discusses the need for potential rate hikes due to economic conditions nearing full employment and approaching the 2% inflation target. It highlights the current state of employment, inflation, and interest rates, and provides insights from the FOMC meeting. The discussion also covers trends in inflation and wages, particularly in the construction industry, and examines the impact of labor market tightness on asset prices.

Why does the speaker believe multiple interest rate hikes are necessary?

• Due to the economy nearing full employment and approaching the inflation target.

• To increase the inflation rate to 3%.

• Because the economy is far from full employment.

• To decrease the unemployment rate further.

What is the main focus of the speaker's speech regarding interest rates?

• Decreasing interest rates to stimulate the economy.

• Using a different base case for gradual rate increases.

• Increasing interest rates rapidly.

• Maintaining current interest rates indefinitely.

What evidence does the speaker provide for rising wages?

• A significant drop in inflation rates.

• An increase in labor force participation.

• A decrease in unemployment rates.

• Complaints about difficulty in hiring for construction work.

What concern does the speaker express about asset prices?

• They are too low compared to historical averages.

• They are showing signs of being overvalued.

• They are not affected by labor market conditions.

• They are decreasing rapidly.

How does the speaker describe the current state of inflation?

• Inflation is well above the 2% target.

• Inflation has not changed in the past year.

• Core inflation is plateaued but closer to the target than before.

• Inflation is decreasing rapidly.