Morgan Stanley's Hornbach Weighs in on Fed Rate Hike

What strategy is used by policymakers when near-term data does not meet expectations?

• They extend the evaluation period.

• They lower interest rates immediately.

• They halt all economic activities.

• They increase bond purchases.

Who was recognized for accurately predicting economic trends 18 months ago?

• Michael McKee

• Donald Trump

• Ted Weissman

• Ellen Zentner

What is the expected impact of removing certain fiscal stimulus assumptions on growth forecasts?

• Growth forecasts will double.

• Growth forecasts will decrease by 0.5%.

• Growth forecasts will remain unchanged.

• Growth forecasts will increase by 1%.

What is the Federal Reserve's approach to interest rates in relation to unemployment?

• Interest rates should be abolished.

• Interest rates should remain constant regardless of unemployment.

• Interest rates should increase with lower unemployment.

• Interest rates should decrease with lower unemployment.

What does 'maximum optionality' refer to in the context of the Federal Reserve's strategy?

• The mandate to increase bond purchases indefinitely.

• The option to stop all economic activities.

• The flexibility to adjust balance sheet normalization plans.

• The ability to change interest rates at any time.