NatWest Markets: Policy Makers Focused on Social Issues

The video discusses the Federal Reserve's approach to inflation, emphasizing patience and allowing the economy to run hot. It examines bond market reactions to economic reports and the potential for future Fed rate hikes. The American Families Plan and its challenges in Congress are explored, along with social welfare reforms aimed at addressing inequality. Finally, predictions on Fed tapering and rate hikes are provided.

What is the Federal Reserve's current stance on inflation?

• They are indifferent to inflation changes.

• They will increase interest rates preemptively.

• They will tolerate higher inflation to support economic growth.

• They plan to reduce inflation immediately.

How has the bond market reacted to recent economic reports?

• Yields have moved higher with positive economic reports.

• Yields have decreased significantly.

• Yields have been unaffected by economic reports.

• Yields have remained constant.

What is a major challenge facing the American Families Plan?

• Lack of public support.

• Opposition from both Republicans and moderate Democrats.

• Insufficient funding.

• No clear objectives.

What is the focus of the American Jobs Plan?

• Reducing taxes for corporations.

• Cutting social welfare programs.

• Increasing military spending.

• Providing ongoing economic support.

What social issues does President Biden's plan aim to address?

• Addressing inequality and providing social welfare benefits.

• Reducing government spending.

• Eliminating environmental regulations.

• Increasing corporate profits.

What is the expected timeline for the Fed's tapering and rate hikes?

• Tapering in 2021 and rate hikes in 2022.

• Tapering in 2022 and rate hikes in 2024.

• Tapering in 2024 and rate hikes in 2026.

• Tapering in 2023 and rate hikes in 2025.

What is a key element of the proposed social welfare overhaul?

• Reducing unemployment benefits.

• Introducing paid parental leave and child benefits.

• Eliminating healthcare subsidies.

• Increasing corporate tax rates.