Fed in Pause Mode as Investors Focus on Balance Sheet, Liz Ann Sonders Says

The video discusses the Federal Reserve's ongoing support for the repo market and its implications for 2020. It highlights the correlation between changes in the Fed's balance sheet and stock market performance, emphasizing the focus on financial conditions. The video also explores the Fed's approach to market volatility, distinguishing between financial system stability and market fluctuations, with a mention of the coronavirus as a potential factor affecting volatility.

What is the Federal Reserve's current monthly purchase amount in the repo market?

• 60 billion

• 70 billion

• 50 billion

• 80 billion

What has developed between changes in the Fed's balance sheet and the stock market?

• A lower correlation

• No correlation

• A higher than cycle correlation

• A negative correlation

What is the Fed's general stance on financial conditions as mentioned in the second section?

• Tightening

• Neutral

• Loose

• Restrictive

According to Jerome Powell, what should the Fed differentiate between?

• Market trends and economic growth

• Financial system stability and market volatility

• Interest rates and inflation

• Stock prices and bond yields

What might not trigger the Fed to consider easier monetary policy?

• A rise in inflation

• A drop in employment rates

• A corrective phase in the market

• A severe market downturn