Why the Fed Will Raise Rates in March

The video discusses the Federal Reserve's decision-making process, focusing on recent economic data and market reactions. It highlights the shift in market expectations for a rate hike, driven by strong economic indicators and stock market performance. The video also examines unemployment and inflation trends, noting improvements in both areas. Finally, it looks at future rate hikes and the infamous dot plot, which forecasts the Fed's monetary policy moves.

What recent change in market expectations is highlighted regarding the Federal Reserve's rate hike?

• A decrease from 100% to 50%

• A stable expectation at 75%

• A decrease from 75% to 25%

• An increase from 50% to 100%

How has the stock market been performing since the US election according to the video?

• It has reached record highs.

• It has been fluctuating without a clear trend.

• It has remained stable.

• It has been declining steadily.

What economic indicators are moving towards the Fed's dual mandate?

• Unemployment and core inflation

• Consumer confidence and retail sales

• GDP growth and trade balance

• Housing starts and industrial production

What was the reported year-on-year increase in average hourly earnings?

• 1.5%

• 4.0%

• 2.8%

• 3.2%

What does the infamous dot plot forecast?

• Future rate hikes by the Fed

• Future stock market trends

• Future unemployment rates

• Future inflation rates