BofA's Moynihan: Fed Will Move Higher Than Neutral Rate

The transcript discusses a speech at the Economic Club of New York, focusing on inflation and the Federal Reserve's strategy to address it. The speaker anticipates that the Fed will exceed the neutral rate due to persistent inflation, which is higher than desired. Economists predict multiple rate hikes, and the market has responded accordingly. The discussion highlights the need for economic adjustments to manage inflation effectively.

What does the speaker expect regarding the Federal Reserve's actions in response to inflation?

• They will eliminate the rate.

• They will go beyond the neutral rate.

• They will maintain the current rate.

• They will go below the neutral rate.

How many rate increases did economists predict earlier in the year?

• Ten rate increases

• Seven rate increases

• Three rate increases

• Five rate increases

What was the market's reaction to the economists' prediction of rate increases?

• The market ignored the prediction.

• The market moved with the prediction.

• The market decreased significantly.

• The market remained stable.

Who is mentioned as being better suited to provide exact estimates on rate changes?

• Brian

• Ethan Harris and team

• The President

• Chair Powell

What is the expected approach to handling inflation according to the discussion?

• Move past current levels and adjust as needed

• Ignore inflation concerns

• Wait it out without changes

• Reduce rates immediately