December Hike Gets Us Closer to Neutral, Says Bank of Singapore's Jooste

The video discusses the market's pricing of Fed rate hikes, noting a divergence from the Fed's dot plot projections. It highlights the market's skepticism towards growth and the Fed's focus on normalizing policy amid tight labor markets. The concept of a 'neutral' policy is explored, with projections for future rate hikes and balance sheet reductions.

What has been the market's general response to the Fed's projected rate hikes?

• The market has fully aligned with the Fed's projections.

• The market has consistently priced in more rate hikes than projected.

• The market has not aligned with the Fed's projections for some time.

• The market has ignored the Fed's projections entirely.

What is the main issue highlighted in the dichotomy between the market and the Fed?

• The market is overly optimistic about growth.

• The Fed is not considering market forecasts.

• The market is skeptical about growth forecasts.

• The Fed is reducing rates too quickly.

What does the Fed consider as part of the puzzle in their policy decisions?

• Stock market performance

• Unemployment rates

• Growth

• Inflation rates

What is the Fed's best guess regarding the current monetary policy stance?

• It is excessively accommodative.

• It is already neutral.

• It is overly restrictive.

• It is still a bit below neutral.

What additional measure is the Fed considering alongside rate hikes to achieve a neutral policy?

• Increasing government spending

• Increasing interest rates on savings

• Reducing the balance sheet

• Lowering taxes