US Core CPI Eases: What Comes Next for the Fed?

The video discusses the current state of the economy, highlighting steady growth at over 2%, stable unemployment, and gradually decreasing inflation. It explains that interest rates are not expected to return to 0% but will remain in low single digits, around 2-3.5%. The Federal Reserve anticipates inflation to stabilize at 2.5% by year-end. Additionally, the labor market has stabilized, which was a key reason for previous rate cuts, and no further cuts are expected.

What is the current growth rate of the economy?

• 4%

• 2%

• 3%

• 1%

What is the expected range for future interest rates?

• 3.5% to 5%

• 2% to 3.5%

• 1% to 2%

• 0% to 1%

By the end of the year, what inflation rate does the Fed anticipate?

• 3%

• 1.5%

• 2.5%

• 2%

What has been the trend in the labor market according to the transcript?

• Increasing unemployment

• Decreasing unemployment

• Volatile

• Stabilized

Why does the Fed see no reason to continue cutting rates?

• Inflation is rising

• The labor market is unstable

• The labor market has stabilized

• Interest rates are too high