Neil Dutta: I Don’t Think Fed Is Behind the Curve

The transcript discusses the interplay between market expectations and the Federal Reserve's rate hike decisions, highlighting the unusual alignment between the two as they approach 2017. It examines the Fed's position in light of economic data and potential policy changes from the incoming administration. The conversation shifts to the impact of the election on the reflation trade, noting that investors have used it as a catalyst to engage in the market. Finally, the discussion covers the implications of rising bond yields and the dollar on corporate earnings and growth expectations.

What was the market's expectation for the number of rate hikes in 2016 according to Stanley Fischer?

• Four hikes

• Three hikes

• Two hikes

• One hike

What does the Fed need to consider when adjusting its forecasts?

• Potential future policies

• Current world conditions

• Speculative market actions

• Public opinion

How did the election influence investor behavior according to the transcript?

• It led to a decrease in commodity prices

• It provided an excuse to engage in the reflation trade

• It resulted in a stable bond market

• It caused investors to sell off stocks

What is the relationship between bond yields and earnings according to the discussion?

• Bond yields have no impact on earnings

• Rising bond yields indicate rising earnings

• Falling bond yields indicate rising earnings

• Rising bond yields lead to falling earnings

What is the effect of the dollar on the Fed's policy decisions?

• The dollar acts as a headwind

• The dollar stabilizes the market

• The dollar has no effect

• The dollar encourages more rate hikes