This FOMC Is Very Much Data Driven, Al Broaddus Says

The transcript discusses the Federal Open Market Committee's (FOMC) hawkish stance, focusing on the potential for four rate hikes in 2018. It highlights the minimal changes in economic projections, with GDP growth peaking in 2018 and a stable inflation rate. The discussion also covers the puzzle of stagnant wage growth and the Phillips Curve's changing dynamics. Inflation expectations play a crucial role in shaping monetary policy, with the Fed's credibility in controlling inflation being a key factor. The debate on the number of rate hikes and the neutral rate is influenced by economic uncertainties, including trade issues and the European economy.

What is the significance of the Phillips Curve in the context of the discussion?

What factors were mentioned that could affect inflation expectations?

What did the speaker suggest about the Fed's approach to policy tightening?