Pimco's Clarida Says December Fed Rate Hike Is 'in Play'

The transcript discusses the Federal Reserve's hawkish meeting, highlighting the likelihood of a December rate hike. It examines the impact of hurricane data on economic calculations and inflation, emphasizing the need for inflation to occasionally exceed 2%. The discussion includes insights from Chicago Fed President Charlie Evans and explores the long-term effects of hurricanes on economic data and future Fed decisions.

What is the probability of a December rate hike according to the discussion?

• 50%

• 90%

• 80%

• 60%

What does the Federal Reserve consider as a potential source of noise in economic data?

• Trade policies

• Stock market fluctuations

• Interest rate changes

• Hurricane impacts

According to Charlie Evans, why should inflation be allowed to exceed 2%?

• To stabilize employment

• To balance past periods of low inflation

• To increase consumer spending

• To boost exports

What is the Federal Reserve's stance on the 2% inflation target?

• It is a minimum requirement

• It is a flexible target

• It is irrelevant

• It is a strict ceiling

How long do the economic effects of hurricanes typically last according to the discussion?

• One month

• Two to three quarters

• One year

• Five years