What the FOMC Minutes Suggest About the Path of Monetary Policy

The transcript discusses the Federal Reserve's approach to interest rate hikes, focusing on Jay Powell's comments and the market's reaction. It highlights the Fed's communication strategy and its impact on capital markets. The discussion also covers the Fed's concerns about market conditions and the potential for future rate increases to manage perceived overvaluations in asset classes.

What was the market's reaction to Jay Powell's change in stance on interest rates?

• A significant uptick in equity markets

• A decline in equity markets

• No change in market conditions

• A decrease in interest rates

How does the Fed plan to respond if capital market conditions worsen?

• By maintaining current interest rates

• By increasing interest rates significantly

• By adapting interest rates to be more market-friendly

• By reducing interest rates to zero

What is a major concern for the Fed when considering interest rate changes?

• The level of government debt

• The unemployment rate

• The performance of the equity and credit markets

• The state of the housing market

What is the Fed's perceived goal in managing interest rates?

• To increase inflation

• To manage down excessive valuations in asset classes

• To boost economic growth

• To stabilize the housing market

What does the Fed consider when deciding if they are 'one and done' with rate hikes in 2019?

• The unemployment rate

• The level of inflation

• The GDP growth rate

• The severity of the equity market correction