Three Must-See Charts About the Fed's Rate Hike Path

The video discusses the market's reaction to the Fed's decisions, highlighting the Fed's cautious approach and the low volatility following their actions. It explores Eric Rosengren's dissent and its potential reasons, including the impact of the election. The year ahead outlook is analyzed, with expectations of a rate hike in December and minimal tightening next year. The concept of euro dollar butterflies is explained, focusing on yield curve analysis and the lack of risk premium in the market.

What was the market's reaction to the Federal Reserve's cautious approach?

• High volatility

• No change

• Little volatility

• Increased dissent

Why did Eric Rosengren not dissent in the recent meeting?

• The election influenced his decision

• He was absent from the meeting

• He had already lodged his dissent for the quarter

• He agreed with the decision

What is the market's expectation for the Federal Reserve's rate hike in December?

• A rate hike of 50 basis points

• No rate hike

• A rate cut

• A rate hike of 25 basis points

What do the 'dots' represent in the context of the Federal Reserve's outlook?

• The number of meetings held

• The number of rate hikes expected

• The number of dissenting votes

• The number of market participants

What do euro dollar butterflies indicate about market expectations?

• Increased risk premium

• No view on future tightening

• Immediate rate hikes

• High inflation expectations