Fed’s Bostic Expects Markets to Absorb Taper ‘Pretty Smoothly’

The video discusses Atlanta's role as a voting member of the Open Market Committee and its potential influence on market interest rates. It questions whether changes in QE purchases would significantly impact the market, suggesting that the economy is strong enough to absorb such changes smoothly. The asset purchases are viewed as an insurance policy that may no longer be necessary, indicating confidence in the economy's continued growth.

What is the significance of Atlanta's role in the Open Market Committee this year?

• Atlanta has no influence on the committee.

• Atlanta's vote is crucial in decision-making.

• Atlanta is a non-voting member.

• Atlanta is leading the committee.

How might Bostick's stance be perceived in the financial community?

• As a dove joining the hawks.

• As an outsider with no influence.

• As a neutral observer.

• As a hawk joining the group.

What is the expected market reaction to a reduction in QE purchases?

• No significant reaction.

• Complete market collapse.

• A strong negative reaction.

• A strong positive reaction.

What is the current state of the economy according to the speaker?

• Weak and unstable.

• In a strong position.

• Declining rapidly.

• Stagnant and unchanging.

Why are asset purchases considered less necessary now?

• The economy is stronger and needs less insurance.

• The asset purchases have failed completely.

• The markets cannot absorb changes.

• The economy is weaker than before.