FOMC Still Sees Another Rate Hike in 2017

The transcript discusses the Federal Reserve's decision to shrink its balance sheet and the implications of a potential rate hike. It highlights the market's reaction, particularly the unexpected strength of the dollar, and examines inflation trends. The discussion also covers the central banks' belief in rising inflation despite current data, and speculates on future rate hikes depending on upcoming economic data.

What was the Federal Reserve's recent decision regarding its balance sheet?

• To eliminate it completely

• To expand it further

• To maintain its current size

• To shrink it

How did the market react to the Fed's announcement?

• The dollar weakened significantly

• The dollar strengthened unexpectedly

• Bond yields decreased

• Stock prices plummeted

What is the Fed's belief about inflation despite current data?

• Inflation will remain low indefinitely

• Inflation will decrease further

• Inflation will rise in the future

• Inflation is irrelevant to their decisions

What might influence the Fed's decision on a December rate hike?

• The current unemployment rate

• Global economic conditions

• Upcoming inflation data

• The stock market performance

What is the Fed's current stance on future economic conditions?

• Cautiously optimistic

• Neutral and undecided

• Optimistic and hawkish

• Pessimistic and dovish