RBC's Porcelli: Expect 'Only a Handful' of Fed Rate Hikes

The transcript discusses the economic concept of letting the economy run hot, as argued by Janet Yellen, and the implications of interest rate hikes. It highlights the focus on how many hikes are left rather than when they occur. The discussion includes inflation metrics, particularly core PCE, and the Fed's inflation expectations. It also examines energy prices and their impact on headline inflation, emphasizing the importance of core services inflation, which is not resonating with the Fed.

What economic concept does Janet Yellen use to justify letting the economy run hot?

• Stagflation

• Hysteresis

• Hyperinflation

• Deflation

What is the main metric favored by the Federal Reserve for measuring inflation?

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

• Core Personal Consumption Expenditures (PCE)

• Gross Domestic Product (GDP)

What is the Federal Reserve's target for headline inflation?

• 2%

• 1%

• 2.5%

• 1.5%

Which type of inflation is highlighted as being consistently high in the transcript?

• Energy inflation

• Food inflation

• Housing inflation

• Core services inflation

According to the transcript, what percentage is core services inflation running at?

• 3.2%

• 1.8%

• 2.5%

• 4.0%