UBS's Carpenter Sees Two More Rate Hikes in 2018, Three in 2019

The transcript discusses the Federal Reserve's approach to interest rate decisions, emphasizing the importance of forecasts and the impact of trade tensions on the economy. It highlights UBS's economic outlook, predicting further rate increases due to a strong economy. The discussion also covers potential market-moving events, the yield curve, and productivity issues, noting the Fed's focus on macroeconomic stability. The transcript concludes with an analysis of market risks and the balance of potential economic outcomes.

What is a key factor in the Federal Reserve's decision-making process regarding interest rates?

• Global oil prices

• Political pressure

• Forecasts and data

• Public opinion

How many times does UBS expect the Fed to raise rates next year?

• Once

• Twice

• Four times

• Three times

What is a potential market-moving event discussed in the video?

• A new round of tariffs

• A change in the US President

• A major technological breakthrough

• A natural disaster

What is the Federal Reserve's stance on the flattening of the yield curve?

• It is a major concern

• It is not a significant worry

• It indicates a recession

• It suggests high inflation

What is not considered the job of monetary policy according to the video?

• Smoothing out the business cycle

• Addressing productivity gains

• Controlling inflation

• Regulating interest rates