Powell: Fed Doesn't See Rate Cuts Happening Anytime Soon

The transcript discusses the committee's consideration of raising interest rates a few times before the year's end, expecting modest economic growth, a cooling labor market, and improved inflation. The goal is to achieve a 2% inflation rate. Future interest rate reductions are not anticipated soon, as they depend on consistent economic performance and inflation trends. The summary of economic projections suggests potential rate cuts by the end of 2024, contingent on inflation moving towards the 2% target.

What is the committee's expectation for the labor market in the near future?

• Sudden decline

• Complete stagnation

• Gradual cooling off

• Rapid growth

What is the committee's target inflation rate over time?

• 2%

• 1%

• 4%

• 3%

Why has the committee slowed down the rate hikes?

• They have reached their target

• They are close to the desired inflation level

• The economy is declining

• Inflation is already at 2%

What is a key factor for considering future rate cuts?

• Rapid economic growth

• Confidence in inflation moving to 2%

• High unemployment rates

• Increased consumer spending

By when do some participants expect potential rate cuts?

• Mid 2024

• End of 2023

• End of 2024

• Start of 2025