Powell Gets Positive Market Reaction as He Preaches Patience

The video discusses the Federal Reserve's recent actions and statements, particularly those of Chairman Powell, and their impact on the market. It highlights Powell's changing stance over the past months, the market's reaction, and the Federal Reserve's strategy for 2019. The discussion also covers the importance of communication, the role of data in decision-making, and the implications of monetary policy and balance sheet adjustments.

What was the market's perception of the Federal Reserve's stance on rate hikes?

• The market expected rate cuts.

• The market expected aggressive rate hikes.

• The market anticipated a pause in rate hikes.

• The market was unsure about the Fed's stance.

How did Chairman Powell's statements change over the months?

• He consistently maintained the same stance.

• He initially focused on balance sheet reduction, then ignored it.

• He moved from a neutral stance to aggressive rate hikes.

• He shifted from being far from neutral to discussing flexibility.

What impact did Powell's changing statements have on the market?

• It caused the market to ignore the Fed.

• It stabilized the market.

• It increased the market's power and influence.

• It reduced the market's influence.

What is the Federal Reserve's plan regarding rate hikes for 2019?

• Three rate hikes planned.

• No rate hikes planned.

• Two rate hikes planned.

• One rate hike planned.

What is the dual tightening strategy mentioned in the discussion?

• Decreasing interest rates and shrinking the balance sheet.

• Decreasing interest rates and expanding the balance sheet.

• Increasing interest rates and shrinking the balance sheet.

• Increasing interest rates and expanding the balance sheet.