What is the significance of term premiums in relation to market implied paths?
Yellen Says Nothing Set in Stone About Path of Policy
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The video discusses the uncertainty and revisions in FOMC projections, highlighting the challenges in comparing RCP and market paths. It explains the difference between modal and mean outcomes and the role of term premiums in affecting market paths.
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2 questions
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1.
OPEN ENDED QUESTION
3 mins • 1 pt
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
How do the FOMC plot and market implied plot differ?
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