Did the Fed Wait Too Long to Raise Rates?

The video discusses the justification for a rate hike based on improving economic indicators such as GDP and employment. It examines various inflation metrics, highlighting the Fed's focus on core PCE. The market's response to the Fed's rate path is analyzed, with a potential hawkish hike in December being considered. The video also explores the political implications of Fed decisions, especially with potential changes in FOMC members and the influence of the incoming Trump administration.

What economic indicators suggest that the economy is improving?

• Decreasing GDP and rising unemployment

• Increasing GDP and strong employment

• Stable GDP and fluctuating employment

• Decreasing GDP and stable employment

Which inflation measurement is most closely watched by the Federal Reserve?

• Core CPI

• Core PCE

• Atlanta Fed core sticky CPI

• Cleveland Fed median CPI

What is the significance of the core PCE trending higher?

• It shows a stable economic environment

• It signals potential for monetary policy adjustments

• It suggests the economy is in recession

• It indicates a decrease in inflation

How has the market's perception of the Federal Reserve's rate path changed recently?

• The market is moving closer to the Fed's projections

• The market expects fewer rate hikes

• The market expects no change in rates

• The market is diverging from the Fed's projections

What potential political factor could influence the Federal Reserve's decisions?

• A new infrastructure stimulus by the government

• A stable political environment

• A decrease in global oil prices

• An increase in foreign investments