Goldman: Fed To Hike 75bps in Nov. 50bps in Dec., 25bps in Feb.

Goldman: Fed To Hike 75bps in Nov. 50bps in Dec., 25bps in Feb.

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Interactive Video

Business

University

Hard

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The video discusses the Federal Reserve's focus on spot inflation and core inflation, emphasizing the importance of data dependency in monetary policy decisions. It highlights the risks of overdoing rate hikes and the potential for policy errors due to the long and variable lags of monetary policy. The discussion also covers the impact of base effects on inflation outlook and the implications for risk assets like equities and bonds. The Fed's preference for erring on the side of being too hawkish rather than too dovish is noted, along with the need for a sustained moderation in inflation to adjust policy.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the Federal Reserve's current focus in terms of inflation?

Market stability

Unemployment rates

Spot inflation

Long-term inflation forecasting

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the Federal Reserve prefer to be too hawkish rather than too dovish?

To support unemployment rates

To ensure inflation is controlled

To avoid criticism from the public

To stabilize the stock market

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are base effects expected to do to inflation in 2023?

Stabilize inflation at current levels

Cause inflation to come down

Have no impact on inflation

Increase inflation significantly

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is necessary for the Federal Reserve to consider changing its policy stance?

A sustained moderation in inflation

Stable stock market performance

A single month of low inflation

High unemployment rates

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might stable inflation affect risk assets according to the discussion?

It will have no effect on risk assets

It will lead to a bond market rally

It will boost equities significantly

It will continue to pressure risk assets