Should the FOMC Heed Bullards Call to Delay End to QE?

The transcript discusses the Federal Reserve's policies, focusing on market confidence, jobs, inflation, and economic data. It highlights global economic concerns, particularly the impact of a strong dollar and European slowdown on the US economy. The potential market reactions to the Federal Reserve's bond buying program are explored, along with Bullard's comments and the Fed's communication strategy. The discussion concludes with an examination of income inequality and the Federal Reserve's role in addressing it.

What was the primary focus of Mr. Bullard's comments regarding the Federal Reserve's policies?

• Increasing interest rates

• Providing a psychological boost to markets

• Reducing unemployment

• Cutting government spending

How does a stronger dollar affect the US economy according to the discussion?

• It boosts exports

• It increases government debt

• It reduces inflation

• It raises concerns about export levels

What market reaction is expected if the Federal Reserve continues its bond-buying program?

• Decrease in stock prices

• Simultaneous movement of bonds and equities

• Increase in bond yields

• Stability in currency exchange rates

What is a significant difference in market behavior noted during the recent retail sales report?

• Decrease in Treasury bond prices

• Normal risk-off trade with a flight to quality

• Rise in inflation expectations

• Increase in short-term funding rates

What is a key aspect of monetary policy discussed in relation to Mr. Bullard's comments?

• Communication strategies

• Trade agreements

• Interest rate adjustments

• Tax policy changes

What concern did Chair Yellen express at the Boston Fed Conference?

• Trade deficits

• Income inequality

• Rising inflation

• High unemployment

What limitation does the Fed face in addressing broader economic issues?

• Lack of financial resources

• Circumscribed mandate

• Political opposition

• Insufficient data