Will Trump, Clinton Debate Have Any Impact on Fed?

The transcript discusses the Federal Reserve's independence from political influence, with Janet Yellen asserting that the Fed's decisions are not swayed by political events. Donald Trump criticized the Fed during a debate, suggesting it acts politically by keeping interest rates low. Market expectations for a rate hike in December are mixed, with conflicting evidence and perceptions about the Fed's actions. Inflation expectations are anchored around 2%, with CPI rising above 3%, while core PCE remains flat at 1.6%. The economic picture is mixed, with both hawkish and dovish signs present.

What did Janet Yellen emphasize about the Fed's decision-making process?

• The Fed is heavily influenced by political events.

• The Fed's decisions are based on public opinion.

• The Fed's decisions are independent of political influence.

• The Fed always follows the President's advice.

What was Donald Trump's opinion on the Fed's interest rate policy?

• He felt the Fed should lower interest rates further.

• He accused the Fed of being politically motivated.

• He thought the Fed was being too aggressive with rate hikes.

• He believed the Fed was doing a great job.

What was the market's expectation regarding the Fed's interest rate decision in December?

• The market was not interested in the Fed's decision.

• The market was divided on the likelihood of a rate hike.

• The market expected a rate cut.

• The market was certain of a rate hike.

What is the current state of inflation expectations according to the transcript?

• Inflation expectations are above 5%.

• Inflation expectations are well anchored around 2%.

• Inflation expectations are not a concern for the Fed.

• Inflation expectations are declining rapidly.

What does the core PCE indicate about the Fed's stance on inflation?

• The core PCE is irrelevant to the Fed's decisions.

• The core PCE has been stable, showing mixed signals.

• The core PCE indicates deflation is a concern.

• The core PCE suggests a strong inflationary trend.