Deep Dive Into the Future Path of Fed Policy

The video discusses the Federal Reserve's rate hikes, focusing on investor expectations and future paths. It highlights the alignment between the Fed, market, and economists on the number of rate hikes expected. The video also covers the FOMC meeting schedule and the use of dots to project future rates, showing a convergence of expectations that has not been seen in years.

What is the expected rate range after one hike according to the April contract?

• 0.75% to 1%

• 1% to 1.25%

• 0.5% to 0.75%

• 1.25% to 1.5%

By when are two rate hikes being priced in according to recent market changes?

• March

• December

• July

• September

What significant change in the Fed's schedule is being suggested by some people?

• Holding meetings bi-annually

• Reducing the number of meetings

• Increasing rates at every meeting

• Decreasing rates at every meeting

What is the current alignment between the Fed, market, and economists regarding rate hikes for the year?

• Two hikes

• Four hikes

• Three hikes

• No hikes

How does the current alignment of Fed and market expectations compare to 2014?

• There are larger gaps now

• The Fed is ahead of the market

• They are more aligned now

• The market is ahead of the Fed