Prof. Krosner Says Market Expected Fed to Remove Gradual

The video discusses the current state of Fed fund futures and the uncertainty surrounding rate hikes. It highlights the Fed's use of the term 'symmetric' in relation to inflation goals, indicating a balanced approach. Predictions for future rate hikes are made, with a focus on economic confidence. The impact of GDP forecasts and economic optimism, particularly regarding investment and regulatory reform, is analyzed. Consumer confidence is examined, along with potential risks associated with Trump's economic policies. Finally, the video explores the Fed's balance sheet and the implications of its reduction.

What recent changes in the Fed fund futures indicate about rate hikes?

How did the markets react to the Fed's decision to keep the word 'gradual' in their description of rate hikes?

What does the term 'symmetric' in the context of inflation goals imply?

What factors might influence the timing of the next rate hike according to the discussion?

How does consumer confidence relate to spending decisions according to Yellen's remarks?

What are the potential risks associated with President Trump's economic program as mentioned in the discussion?

What concerns does the Fed have regarding the reduction of the balance sheet?