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Specification:

  • Monetary policy

Click to read the article below and then answer the questions:

The risk of premature central bank celebrations on inflation

  • What change did Powell announce in December? 

  • Why do markets so closely watch the Fed’s announcements? 

  • What is the Fed’s announced “idle” or neutral interest rate target? 

  • Why would lowering interest rates be a concern if the US is at full capacity?

  • What is the danger in the US prematurely celebrating the end of inflation? Why?

Ariel Slonim at MRU Econinbox

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