Fed's Evans on Inflation Targets and Rate Hikes

The transcript discusses the economic outlook and expectations for rate hikes in 2016, considering improved economic conditions and inflation targets. It covers labor market data adjustments, the timing of rate hikes, and market expectations. The impact of Brexit on global economic uncertainty and its influence on Fed policy is also examined.

What is the speaker's expectation for the funds rate by the end of 2016?

• 50 to 75 basis points

• 75 to 100 basis points

• 100 to 125 basis points

• 125 to 150 basis points

Why might the US consider allowing the economy to run hotter?

• To boost exports

• To raise inflation expectations

• To increase employment

• To decrease interest rates

What factor is mentioned as potentially affecting payroll data?

• A government shutdown

• The Verizon strike

• A change in tax policy

• A natural disaster

What is the speaker's view on the timing of rate hikes?

• It is crucial to decide early

• It should be avoided in summer

• It can be flexible depending on conditions

• It must be done in June

What might necessitate a press conference in July?

• A change in the inflation target

• A decision to raise rates

• A new economic policy

• A change in leadership

How does the speaker describe the impact of Brexit on the global economy?

• It will have no impact

• It adds significant uncertainty

• It will stabilize markets

• It will boost global growth

What is a potential long-term concern of Brexit according to the discussion?

• Higher inflation in Europe

• A recession in the UK

• Increased trade with the US

• Stronger economic ties with Asia