Fed Can Afford to Pause in 2020, Says StanChart’s Hewin

The transcript discusses the Federal Reserve's recent and potential future rate decisions, highlighting the challenges in aligning market expectations with policy actions. It addresses global economic uncertainties, such as Brexit and trade wars, and their impact on investment and employment. The discussion also covers the Fed's stance on quantitative easing (QE) and recent disturbances in the repo market, clarifying that recent actions are not considered QE.

What is one of the main challenges the Fed faces in communicating its policy decisions?

• The gap between Fed's rate projections and market expectations

• The Fed's inability to control inflation

• The lack of clarity in the Fed's internal minutes

• The influence of foreign central banks on the Fed's decisions

What are some of the global uncertainties mentioned that affect the Fed's policy decisions?

• Brexit and trade wars

• Climate change and natural disasters

• Technological advancements and cyber threats

• Political elections and social movements

What is the Fed's stance on continuing the rate easing cycle?

• The Fed has no clear stance on rate changes

• The Fed is committed to aggressive rate cuts

• The Fed plans to increase rates immediately

• The Fed is considering pausing the rate cuts

What is the Fed's plan regarding the supply of reserves?

• To reduce the supply significantly

• To add to the supply over time

• To eliminate the supply entirely

• To maintain the current supply levels

How does the Fed classify its recent actions in the repo market?

• As a temporary measure to address disturbances

• As a form of quantitative easing

• As an unrelated financial strategy

• As a permanent change in policy