Commerzbank Economist Thinks Fed Skips a March Rate Hike

The transcript discusses the Federal Reserve's strategy regarding interest rate hikes, focusing on market expectations and the timing of potential rate increases. It highlights the Fed's communication challenges, particularly in aligning market expectations with their policy intentions. The discussion includes insights from Mr. Harker's comments, the impact of economic uncertainties, and the Fed's cautious approach to avoid market surprises. The transcript also examines the alignment between market predictions and the Fed's rate hike plans for 2017, emphasizing the possibility of multiple rate hikes within the year.

What is the main reason the Fed is using the March meeting as a tool?

• To confirm a rate hike in March

• To announce new economic policies

• To align with market predictions

• To manage expectations for a June rate hike

Why is a rate hike in March considered unlikely?

• The markets are expecting a March hike

• The Fed has already confirmed a March hike

• The economy is too strong for a hike

• There is a lack of preparation and clarity on policies

What is one reason the Fed might avoid surprising the markets?

• To align with Donald Trump's policies

• To ensure a March rate hike

• To increase inflation rates

• To maintain stability and avoid market disruptions

How does the Fed's 2017 strategy compare to the previous year?

• It has no clear strategy for rate hikes

• It is less focused on economic conditions

• It is more aligned with market expectations

• It plans fewer rate hikes than in 2016

What is the Fed's projected number of rate hikes for 2017?

• Three

• One

• Two

• Four