Fed’s George Says 2017 Rate Hikes Depend on Economy

The video discusses the disparity between hard and soft economic data, highlighting weak retail sales and housing starts. It explores the Federal Reserve's divided stance on interest rate hikes and the strategy of gradual normalization. The discussion includes plans for balance sheet normalization, emphasizing the need for careful consideration of timing and potential economic impacts. The speaker expresses concerns about the costs and benefits of the balance sheet policy, advocating for a cautious approach due to the lack of historical precedent.

What is one potential indicator of a recession mentioned in the first section?

• Expanding housing market

• Increasing retail sales

• Flattening yield curve

• Rising consumer confidence

What is the Federal Reserve's approach to interest rate changes as discussed in the second section?

• Immediate and aggressive

• Fixed and unchanging

• Gradual and cautious

• Random and unpredictable

How many interest rate hikes does the Federal Reserve consider, according to the second section?

• Ten or more

• One to three

• Seven to nine

• Four to six

What is a key concern regarding the balance sheet reduction mentioned in the third section?

• Decreased unemployment

• Increased inflation

• Potential negative effects

• Immediate economic growth

Why is caution advised in the balance sheet reduction process?

• Due to historical success

• Because of unpredictable costs

• To avoid immediate benefits

• To ensure rapid changes