I Don't Think the Fed Can Rest Easy at All: Rajadhyaksha

The video discusses the Federal Reserve's unexpected decision to increase interest rates by 50 basis points, surprising the market which anticipated fewer hikes. The conversation explores the possibility of further rate hikes, drawing parallels with other central banks. It also delves into potential policy mistakes, particularly concerning unemployment, and critiques the reliability of inflation models, emphasizing the importance of current data in decision-making.

What was the market's expectation regarding the Federal Reserve's rate hikes before the surprise decision?

• No more hikes

• One more hike

• A decrease in rates

• Three more hikes

Which central bank is mentioned as having to revise its policy after initially thinking it was done?

• Federal Reserve

• Reserve Bank of Australia

• Bank of Japan

• European Central Bank

What did the Fed do to its inflation forecast for the end of the year?

• Increased it by 50 basis points

• Increased it by 30 basis points

• Kept it unchanged

• Lowered it by 30 basis points

What is a potential consequence of a policy mistake by the Fed, as discussed in the transcript?

• A decrease in inflation

• A rise in unemployment rate by 120 basis points

• An increase in GDP growth

• A decrease in unemployment rate by 120 basis points

Since 2021, what has been the issue with inflation models according to the transcript?

• They have predicted deflation

• They have been highly accurate

• They have been ignored by the Fed

• They have been consistently wrong