Weeden's Purves Sees Fed Perplexed by Inflation

The transcript discusses the economic uncertainty faced by the Federal Reserve, particularly in relation to inflation and the challenges of data dependency. It highlights Janet Yellen's approach and the potential implications of her recent speech on monetary policy. The discussion also covers the impact of a stronger dollar on various asset classes and the sensitivity of equities to currency fluctuations. The yield curve and its relation to foreign quantitative easing are also examined.

What is one of the main challenges the Federal Reserve is facing according to the transcript?

• Balancing the budget

• Understanding the Phillips curve

• Managing productivity

• Controlling unemployment

What did Janet Yellen suggest in her speech to the National Association for Business Economics?

• To consider rate hikes even if inflation is below 2%

• To reduce interest rates immediately

• To wait until inflation exceeds 3%

• To keep monetary policy on hold indefinitely

What could be a potential outcome of a stronger dollar as discussed in the transcript?

• Increased inflation

• Flatter yield curve

• Weaker US small caps

• Stronger emerging market equities

How does foreign quantitative easing influence the yield curve according to the transcript?

• It flattens the yield curve

• It steepens the yield curve

• It has no effect on the yield curve

• It causes the yield curve to fluctuate unpredictably

What is a significant factor affecting asset classes globally as mentioned in the transcript?

• Government spending

• The strength of the dollar

• Interest rates

• Trade policies