Fed's Lacker Terms Trump's Yellen View as 'Problematic'

The transcript discusses the intersection of politics and the Federal Reserve, highlighting Donald Trump's influence on monetary policy and the potential impact on the Fed's credibility. Jeff Lacker's comfort with four rate hikes is explored, emphasizing the Fed's hawkish stance. Stanley Fischer's speech is analyzed, focusing on the equilibrium rate and its implications for future rate hikes, suggesting a lower terminal rate due to slower economic growth.

What issue arises when a president replaces a Fed chair due to disagreements on monetary policy?

• It brings politics into monetary policy.

• It strengthens the Fed's credibility.

• It results in economic growth.

• It leads to higher interest rates.

What is Jeff Lacker's stance on the number of Fed rate hikes for the year?

• He opposes any rate hikes.

• He is comfortable with four rate hikes.

• He is comfortable with two rate hikes.

• He supports no rate hikes.

According to Jeff Lacker, what is not necessary to justify a rate increase?

• A new economic forecast.

• A significant drop in inflation.

• A significant rise in inflation.

• A change in the economic direction.

What does Stanley Fischer suggest about the terminal rate for future rate hikes?

• It will be unpredictable.

• It will remain unchanged.

• It will be lower than in the past.

• It will be higher than in the past.

What factor contributes to the lower neutral rate according to Stanley Fischer?

• Slower economic growth.

• Rapid economic growth.

• Increased inflation.

• Decreased inflation.