Girard: Fed Will Want Markets Fully Prepped for June Hike

The transcript discusses the Federal Reserve's strategy to prepare markets for potential rate hikes, particularly in June, considering the UK vote. It explores the likelihood of rate hikes in subsequent meetings if not in June, and the internal dynamics within the Fed, focusing on the divide between those prioritizing domestic versus global growth. The discussion highlights the Fed's cautious approach to avoid surprising markets negatively.

What is the Federal Reserve's strategy regarding market surprises?

• To focus solely on domestic economic indicators

• To keep the markets guessing about their next move

• To clearly telegraph intentions ahead of rate hikes

• To surprise the markets with unexpected rate hikes

If the Fed does not raise rates in June, what is one potential outcome discussed?

• They might downgrade their dot forecasts

• They will definitely raise rates in July

• They will increase rates in back-to-back meetings

• They will rule out any rate hikes for the year

What is a challenge mentioned regarding back-to-back meetings?

• It is a strategy to surprise the markets

• It is the preferred approach by the Fed

• It is considered unlikely if no action is taken in June

• It is seen as a strong signal to the markets

How has the divide within the Federal Reserve shifted according to the discussion?

• From domestic growth to global growth considerations

• From interest rates to fiscal policy

• From doves versus hawks to domestic versus global growth

• From a focus on inflation to employment

Which individuals are noted for being cautious about raising interest rates due to global concerns?

• The Treasury Secretary

• Fed Chair and Governor Brainard

• All FOMC members

• Only the hawkish members