What the Fed's 'Patience' Means

The transcript discusses the Federal Reserve's stance on being patient and flexible, highlighting a disconnect between the Fed's message and market perception. The Fed remains data-dependent, with expectations of potential rate hikes. The discussion also covers the impact of tightening financial conditions on US growth, inflation considerations, and the possibility of the Fed adopting a less restrictive monetary policy.

What is the main reason for the disconnect between the Fed's message and market perceptions?

• The Fed has changed its guidance.

• Markets expect no action from the Fed in 2019.

• The Fed is not data-dependent.

• The Fed has increased interest rates significantly.

How do tightening financial conditions affect U.S. growth according to the transcript?

• They eventually hurt U.S. growth.

• They have no impact on the economy.

• They improve corporate profits.

• They lead to increased inflation.

What is the Fed's dual mandate?

• Full employment and stable inflation.

• Stable currency and high employment.

• High interest rates and low inflation.

• Economic growth and low unemployment.

What question does the transcript suggest investors will consider in 2019?

• Whether the Fed will cut interest rates.

• Where the Fed will go on hold.

• If the Fed will increase inflation.

• How the Fed will reduce unemployment.

What does the transcript suggest about the Fed's potential future monetary policy stance?

• The Fed might hold rates at a non-restrictive level.

• The Fed will reduce interest rates to zero.

• The Fed will focus solely on inflation control.

• The Fed will continue to tighten aggressively.