Powell Indicates Two or More Fed Hikes by End of Year

The video discusses ongoing high inflation pressures and the Federal Reserve's efforts to reduce inflation to 2% through significant policy rate increases. It highlights the effects of these policies on interest rate-sensitive sectors like housing and investment, and the challenges posed by tighter credit conditions. The Federal Open Market Committee (FOMC) has decided to maintain the federal funds rate while reducing securities holdings, considering the progress in policy tightening and potential economic headwinds. The FOMC's economic projections suggest further interest rate hikes may be necessary.

What has been the recent trend in inflation pressures according to the text?

How much has the policy rate been raised since early last year?

What sectors of the economy are most affected by the policy tightening?

What are the expected effects of tighter credit conditions on the economy?

What decision did the Federal Open Market Committee make regarding the federal funds rate?