Nomura's Goncalves Expects Two Fed Rate Hikes in 2017

The transcript discusses the economic outlook and the expectation of rate hikes based on economic data rather than political influences. It highlights the strategic assessment of economic conditions, emphasizing the importance of inflation and unemployment. The discussion also covers fiscal policy measures, potential rate adjustments, and the impact of changes in Fed leadership on future rate hikes.

What are the primary indicators mentioned for determining rate hikes?

• Government spending and budget deficit

• Trade balance and currency exchange rates

• Inflation and unemployment

• Stock market performance and GDP growth

Why is it considered unwise to keep rates too low for too long?

• It may cause a rise in unemployment

• It could hinder economic growth and increase inflation

• It might result in a stock market crash

• It could lead to a decrease in consumer spending

What is the potential impact of fiscal policy measures on the economy?

• They could slow down economic growth

• They could accelerate growth and inflation

• They might decrease inflation

• They might lead to higher unemployment

What uncertainties are associated with the future actions of the Federal Reserve?

• Changes in global trade policies

• Potential changes in Fed leadership and their stance on inflation

• Fluctuations in the stock market

• Variations in consumer confidence

How might a more hawkish Fed leadership affect interest rates?

• Interest rates would become more volatile

• Interest rates would likely increase

• Interest rates would remain unchanged

• Interest rates would likely decrease