The discussion of the balance of risks in the FOMC statement refers to the relative risk
A)of increasing or decreasing interest rates.
B)toward economic weakness or higher inflation.
C)of changing policy now or waiting for more information.
D)open market sales or purchases.

Question

Quizplus · Accepted Answer

The balance of risks in the FOMC statement refers to the relative risk between economic weakness and higher inflation. The statement discusses the potential risks of both outcomes, and the FOMC must consider these risks when deciding on monetary policy. Options A, C, and D are not mentioned in the balance of risks discussion.

The Discussion of the Balance of Risks in the FOMC