Cameron Watt: Fed in Wait-and-See Mode on Trump

The transcript discusses the Federal Reserve's current stance on economic policies, focusing on potential rate hikes and the impact of fiscal policies under Trump's administration. It highlights the importance of economic indicators like inflation expectations and labor market conditions, emphasizing the Fed's cautious approach to avoid overheating the economy.

What does the economic surprise index indicate about market sentiment?

• It shows the market is overly optimistic.

• It reflects a balanced market sentiment.

• It indicates a shift from pessimism to optimism.

• It suggests the market is overly pessimistic.

What is the Federal Reserve's likely approach to interest rate hikes according to the discussion?

• They will not consider any rate hikes this year.

• They might prepare for a rate hike in March.

• They will delay any rate hikes until next year.

• They will immediately implement multiple rate hikes.

How does the Federal Reserve view Trump's fiscal policies in their decision-making process?

• They are actively incorporating them into their plans.

• They are waiting for concrete details before reacting.

• They are fully supportive of all policies.

• They have dismissed them as irrelevant.

What is Janet Yellen's area of expertise that influences her view on the economy?

• International trade

• Monetary policy

• Fiscal policy

• Labor economics

What is the current state of the US labor market according to the discussion?

• It has fully recovered from the crisis.

• It is in a state of decline.

• It still has room to grow before overheating.

• It is overheating with no output gap.