Fed Is Set Up for a March Interest Rate Hike, Says Doty

The video discusses the Federal Reserve's potential rate increases under Jay Powell, considering economic outlook changes and inflation expectations. It highlights the impact of tax reform on economic forecasts and market expectations for Fed fund futures. The discussion includes portfolio managers' perspectives on rate increases and how market forecasts may differ from Fed futures. The video concludes with an analysis of the timing and frequency of rate increases.

What was the impact of tax reform on the economic outlook discussed in the video?

• It resulted in a reduction of interest rates.

• It caused a delay in the Fed's decision-making process.

• It allowed for a clearer economic outlook based on new conditions.

• It led to a decrease in inflation expectations.

What are the market expectations for Fed fund futures in 2019 according to the video?

• 95 basis points

• 150 basis points

• 63 basis points

• 120 basis points

How do portfolio managers' expectations of rate increases compare to Fed fund futures?

• They expect fewer rate increases.

• They expect the same number of rate increases.

• They expect more rate increases.

• They do not have any expectations.

What is a potential consequence of Fed fund futures indicating a four rate increase?

• It would lead to a recession.

• It would decrease inflation.

• It would distort the near-term interest rates.

• It would stabilize the market.

Why do the Fed prefer to implement rate increases at specific times?

• To align with international markets.

• To coincide with their press releases.

• To avoid market disruptions.

• To follow historical trends.