Yellen Signals Fed Is Close to Raising Rates

The transcript discusses the Federal Reserve's expectations for fiscal stimulus following the election of Donald Trump. It highlights the uncertainty surrounding fiscal plans and their impact on the Fed's economic outlook. The labor market is analyzed, noting minimal wage pressures. Fed Chair Janet Yellen's cautious approach to policy normalization is emphasized, with a focus on communication challenges and economic projections. Yellen's consistent stance is compared to Margaret Thatcher's, maintaining stability despite market pressures.

What is the Federal Reserve's stance on fiscal stimulus expectations post-election?

• They are certain about the impact.

• They are increasing their expectations.

• They have already changed their outlook.

• They are waiting for more details.

Why is the Federal Reserve cautious about modeling fiscal stimulus?

• They have all the necessary details.

• They are waiting for Congress to agree on spending.

• They believe the economy is already overheating.

• They have already set their projections.

What is Janet Yellen's approach to monetary policy?

• She follows market trends closely.

• She is consistent and cautious.

• She ignores wage pressures.

• She frequently changes her stance.

What does a low neutral rate indicate according to the Federal Reserve?

• The Fed is far from its targets.

• Wage pressures are high.

• The Fed is close to its targets.

• The economy is overheating.

What is the Federal Reserve's current view on wage pressures?

• They are decreasing.

• They are causing rapid inflation.

• They are not yet evident.

• They are significantly high.