Fed to Assume Extension of Trump Tax Cuts, Bill Dudley

The transcript discusses the assumptions made for the 2025 economic policy backdrop, focusing on the extension of the 2017 tax cuts and the uncertainty surrounding tariffs and immigration policies. It evaluates the impact of these policies on growth, inflation, and productivity. The discussion also covers the utility of dot plots in economic forecasting and the expected rate cuts in 2025, highlighting the potential for a pause in January. The conversation concludes with a focus on the Federal Reserve's estimates of the neutral rate and the implications for monetary policy.

What changes in the Federal Reserve's rate cuts are anticipated for 2025 compared to previous forecasts?

What is the significance of the 'R star' in the context of monetary policy and economic forecasts?