What the Fed Statement Means for Rates

The video discusses the Federal Reserve's report on inflation and the likelihood of rate hikes. It highlights market-based measures of inflation, such as TIPS break-evens, and their recent increase. The discussion also covers the potential factors that could influence a rate hike, including unemployment rates and wage inflation. The Fed's response to these economic indicators is analyzed, emphasizing the expected rise in interest rates.

What are the two main points discussed regarding inflation in the Fed's report?

What does the increase in market-based measures of inflation compensation suggest about the Fed's future actions?

How have the five-year forward Tips Break evens changed since the last meeting?

What factors are expected to influence the Fed's decision on rate hikes in March?

What is the significance of wage inflation in the context of the Fed's economic outlook?