Apollo's Slok Sees No More Fed Hikes Despite Hot CPI Report

The video discusses the transitory nature of disinflation and the persistent strength of the service sector, which keeps super core inflation elevated. It highlights the Federal Reserve's strategy to maintain high interest rates to slow down the service sector and control inflation. The impact of these policies is seen in the difficulty companies and consumers face in obtaining loans due to high interest rates. The video concludes by explaining that these economic adjustments align with textbook predictions of the effects of Fed rate hikes.

What is one reason why super core inflation remains high?

• The goods sector is declining.

• The service sector is performing well.

• The housing market is booming.

• Interest rates are decreasing.

What is the Federal Reserve's strategy to manage the service sector's inflation?

• Reduce taxes.

• Lower interest rates.

• Increase government spending.

• Keep interest rates elevated.

What evidence suggests that Fed policy is starting to have an impact?

• Borrowing costs are rising for companies and consumers.

• Interest rates on loans are decreasing.

• The housing market is recovering.

• Companies are expanding rapidly.

What is one intended effect of the Fed's rate hikes?

• Boost factory construction.

• Encourage more hiring.

• Increase consumer spending.

• Reduce spending on credit cards.

According to the transcript, what is the textbook prediction regarding economic data?

• Economic data will remain unchanged.

• Economic data will show the effects of Fed hikes.

• Economic data will improve significantly.

• Economic data will worsen without any intervention.