Levenson on Trump, Trade and Fed Policy

The transcript discusses the Federal Reserve's expectations and market reactions following the election, particularly focusing on the potential for rate hikes and their implications for the economy. It highlights the uncertainty surrounding Trump administration policies and their sequencing, which could affect economic growth. The discussion also covers economic indicators, market speculation, and the strengths and weaknesses of the economy as it heads into 2017, emphasizing internal balance, housing, and labor market recovery.

What was the immediate market reaction to Trump's election victory?

• Interest rates were cut

• Stock markets crashed

• Fed funds futures dropped to 50%

• Fed funds futures increased to 100%

What fiscal policy is expected to be a focus under the Trump administration?

• Increased tariffs

• Tax cuts

• Reduced government spending

• Higher interest rates

What is the expected path of Fed rate hikes in 2017?

• A half percentage point increase

• A steep increase

• No rate hikes

• A full percentage point increase

Which sector showed improvement according to recent data?

• Energy

• Manufacturing

• Technology

• Agriculture

What is considered a strength of the U.S. economy heading into 2017?

• Strong corporate profitability

• Weak housing market

• High unemployment

• Declining retail sales