Standish Mellon's Reinhart on Fed's Growth Outlook

The transcript discusses the Fed's growth outlook, highlighting the potential impact of tax cuts on GDP and the output gap. Despite expected GDP growth, inflation remains unchanged, indicating challenges in a globalized economy. Janet Yellen's comments on tax cuts and FOMC forecasts are examined, along with the implications for rate hikes in 2018. The discussion also touches on economic momentum and optimism indices.

What is the expected impact of tax cuts on the GDP growth according to the Fed's revised projections?

• An increase in GDP growth by 8 tenths of a percentage point

• A decrease in GDP growth by 2%

• No change in GDP growth

• A decrease in GDP growth by 8 tenths of a percentage point

Why does the Fed have the same inflation path despite higher GDP growth expectations?

• Because the Fed expects deflation

• Because inflation is easy to control

• Due to the globalized economy making inflation hard to increase

• Due to a decrease in global trade

What did Janet Yellen downplay in the press conference?

• The significance of small business optimism

• The impact of tax cuts on FOMC forecasts

• The importance of GDP growth

• The role of global trade in inflation

What is the potential effect of tax cuts on the number of rate hikes in 2018?

• It will have no effect on rate hikes

• It could lead to a decrease in interest rates

• It could lead to fewer rate hikes

• It could lead to more than three rate hikes

What recent economic indicator reached its highest level since 1983?

• Consumer confidence index

• Unemployment rate

• Small business optimism index

• Inflation rate