Bruce Kasman: Fed Can Raise Rates Twice in 2016

The transcript discusses the uncertainties surrounding the US and global economies, particularly in light of the upcoming Brexit vote and recent employment reports. It explores the Federal Reserve's potential decisions regarding interest rate hikes, emphasizing the need for economic stability and the absence of financial market disruptions. The concept of economic slack is examined, along with its implications for the labor market and inflation. The discussion also highlights the influence of financial variables, such as the dollar and oil prices, on the Fed's outlook. Predictions are made about future rate rises and their potential impact on the economy.

What is one reason the Federal Reserve is unlikely to tighten monetary policy in June?

• High inflation rates

• Stable financial markets

• Uncertainties in the global economy

• Strong April payroll report

What does the term 'slack' in the economy refer to?

• High interest rates

• Unemployment and underutilized resources

• Excessive inflation

• Strong economic growth

What is a sign that the labor market is becoming tight?

• Rising inflation

• Diminishing slack

• Decreasing wages

• Increasing unemployment

How does Janet Yellen approach the Federal Reserve's decision-making process?

• By following the economy

• By prioritizing employment rates

• By focusing solely on inflation

• By ignoring financial markets

What could potentially lead to two rate hikes by the Federal Reserve?

• Decreasing inflation

• A weak global economy

• Stable financial environment and normal growth rate

• High unemployment rates