Pantheon's Shepherdson: U.S. Doesn't Need Stimulus

The transcript discusses the current state of the US economy, focusing on the implications of Donald Trump's election and the potential shift to a more expansionary fiscal policy. It examines the risks of running a high-pressure economy, including inflation overshoot and market reactions. The role of the Federal Reserve and the possibility of multiple interest rate hikes in 2017 are also explored, considering the impact of potential stimulus measures on an already tight labor market.

What is the current state of the US manufacturing sector according to the transcript?

• It is in a recession.

• It is experiencing a boom.

• It is recovering from a downturn.

• It is stagnant.

What does Janet Yellen suggest about running a high-pressure economy?

• It could lead to a recession.

• It is a guaranteed success.

• It might boost productivity.

• It will definitely lower inflation.

What is a potential risk of overshooting inflation targets?

• Increased unemployment

• Market instability

• Lower interest rates

• Decreased productivity

What factor is crucial for determining the number of interest rate hikes in 2017?

• The stock market performance

• The size of the stimulus

• The unemployment rate

• The global economic conditions

What is the market's current stance on the potential interest rate hikes?

• Partially ready

• Fully prepared

• Indifferent

• Completely unaware