Raymond James Economist Expects More Hawkish Fed in 2018

The video discusses the economic outlook, focusing on inflation concerns, fiscal stimulus, and leadership changes at the Federal Reserve. It highlights the uncertainty in monetary policy and market adjustments, particularly regarding long-term interest rates. The challenges in achieving the Fed's 2% inflation target are examined, considering factors like labor market slack and commodity prices. The potential for a more hawkish Fed and its implications for market expectations are also explored.

What are the main concerns discussed regarding the economic outlook?

• Inflation and economic overheating

• Deflation and currency devaluation

• Technological advancements and productivity

• Trade deficits and unemployment

What is expected to happen with the Federal Reserve's leadership?

• New faces joining and a potential hawkish shift

• No changes in leadership

• A shift towards a more dovish stance

• A complete overhaul of the board

How might fiscal stimulus impact interest rates according to the discussion?

• It will have no impact on interest rates

• It might lead to a decrease in interest rates

• It could prompt an earlier increase in interest rates

• It will stabilize interest rates

What factors were expected to increase inflation but did not?

• Increased consumer spending and low unemployment

• Slack in the labor market and a strong dollar

• Rising wages and high demand

• High commodity prices and a weak dollar

What could be a problem for the Fed if market expectations of inflation remain low?

• The Fed might have to lower interest rates

• The economy will experience rapid growth

• The 2% inflation goal might become a ceiling

• The Fed will achieve its inflation target easily