Inflation Reports Are Staying the Fed's Hands, University of Oregon's Duy Says

The transcript discusses the Federal Reserve's approach to interest rate hikes amidst tame inflation and economic stability. It highlights Fed Governor Lyle Brainerd's hawkish stance, suggesting more rate hikes than expected. Concerns about economic overheating and the strong job market are addressed, along with the impact of US monetary policy on emerging markets. The Fed's balance between data and model dependence in decision-making is explored, and potential market surprises in rate hike expectations are considered.

What are the implications of the Fed's gradual pace of rate hikes?

What concerns does the Fed have regarding the economy overheating?

How does the job market influence the Fed's decision on interest rates?

In what ways do core CPI and PCE differ, and how does this affect rate decisions?

What is the significance of the short run neutral interest rate in the Fed's policy?

How does the Fed's approach to data dependency affect its policy decisions?

What potential surprises could the markets face regarding future rate hikes?