What to Expect From the Fed in 2017

The video discusses the dot plot and its alignment with market expectations, analyzing bond market reactions and potential buying opportunities. It explores the neutral rate's impact on economic growth and examines fixed income market dynamics. The video concludes with investment strategies and market outlook, highlighting sector performance and potential opportunities.

What is the significance of the dot plot in the context of Federal Reserve's interest rate hikes?

• It sets the inflation targets.

• It determines the fiscal policy.

• It forecasts the future interest rate hikes.

• It predicts the stock market trends.

How does the neutral rate affect the Federal Reserve's ability to hike interest rates?

• A lower neutral rate allows more room for hikes.

• A higher neutral rate allows more room for hikes.

• The neutral rate only affects inflation.

• The neutral rate has no impact on interest rate hikes.

What is the impact of pro-growth policies on the US potential growth rate?

• They significantly increase the growth rate.

• They have no impact on the growth rate.

• They may not materially change the growth rate.

• They decrease the growth rate.

Which bond sector has shown a strong rally since the election?

• Municipal bonds

• Emerging market bonds

• US corporate bonds

• European high yield bonds

What is a potential risk associated with bank loans in the current market?

• They have low credit ratings.

• They are trading well above par.

• They have fixed interest rates.

• They are not callable.