What Can We Expect From This Week's FOMC?

The video discusses the economic outlook for 2020, focusing on policy rates, trade deals, and their impact on the economy. It highlights the strength of the labor market and inflation trends, and examines the Federal Reserve's operations in the repo markets. The discussion includes potential changes in policy rates, the likelihood of a phase one trade deal, and the Fed's approach to managing inflation and market pressures.

What is the consensus regarding the policy rate for 2019?

• It will be abolished.

• It will remain unchanged.

• It will be decreased.

• It will be increased.

What factor has been encouraging the Fed to maintain its current stance?

• Trade deal uncertainties

• High inflation rates

• Robust job readings

• Weak manufacturing data

What is the Fed's key measure for inflation?

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

• Personal Consumption Expenditures (PCE) deflator

• Gross Domestic Product (GDP) deflator

What is expected to play a big role in market sentiment at year-end?

• Interest rate hikes

• Repo operations and reserve management

• Corporate tax payments

• Trade deal announcements

What is the Fed's approach to inflation targets during this economic expansion?

• To keep inflation below 2%

• To maintain inflation at exactly 2%

• To allow inflation to rise above 2% for a prolonged period

• To ignore inflation targets