OCBC's Ling Says Powell Is Safe Choice

The video discusses the Federal Open Market Committee's (FOMC) guidance for a December rate hike and the implications of Jerome Powell's appointment as the new Fed chair. It explores market expectations for policy continuity and skepticism about future rate hikes. The composition of the Fed's governing board and its potential impact on policy decisions is examined, especially with upcoming vacancies. The video also considers the evolving fiscal policy and its potential effects on economic growth, inflation, and unemployment, noting that current Fed projections do not account for fiscal stimulus.

What is the primary focus of the FOMC guidance discussed in the video?

• New Fed leadership

• Fiscal policy

• December rate hike

• Tax reform

Why is Powell considered a safe choice for the new Fed head?

• He is new to the Fed

• He has never dissented against monetary policy decisions

• He has a PhD in economics

• He is known for aggressive policy changes

What is the market's belief regarding the Fed's projected rate hikes?

• The market fully supports the projections

• The market expects more rate hikes

• The market is skeptical about achieving the projections

• The market is indifferent to the projections

What could influence the Fed's policy decisions according to the second section?

• International trade agreements

• The composition of the Fed's governing board

• The weather conditions

• The stock market performance

How might the Fed react to a larger than expected fiscal stimulus?

• By maintaining current policies

• By reducing interest rates

• By ignoring the stimulus

• By reacting more aggressively