Barclays' Fernandez Sees Fed Being Data Dependent in 2018

The transcript discusses the recent Fed meeting, highlighting a dovish tilt and divisions over future monetary policy. Despite confidence in the labor market, some officials want stronger signs of inflation before raising rates. David Fernandez from Barclays provides insights, noting no surprises in the FOMC minutes and emphasizing data dependency. The inflation debate continues, with some seeing transitory pressures and others predicting upside risks. Barclays forecasts two more rate hikes next year, contingent on inflation firming up.

What was highlighted in the recent Fed meeting minutes?

• An aggressive approach to rate hikes

• A dovish tilt and divisions over future monetary policy

• A hawkish tilt and consensus on monetary policy

• A neutral stance with no divisions

According to David Fernandez, what was the general sentiment from the FOMC minutes?

• There were many surprises

• The sentiment was largely unchanged

• The Fed is likely to cut rates

• The Fed is abandoning data dependency

What is the Fed's concern regarding disinflation?

• It is not a concern at all

• It will lead to immediate rate cuts

• It is transitory or temporary

• It is a permanent issue

What does Barclays forecast regarding future rate hikes?

• Three more rate hikes next year

• No rate hikes next year

• One rate hike next year

• Two more rate hikes next year

What is becoming a more dominant narrative for the Fed as we move into 2018?

• Maintaining extremely low rates indefinitely

• Ignoring inflation data

• Returning to data dependency

• Focusing solely on financial stability