Fed Was Forced to Be Market Dependent, Says Northern Trust's Sturkenboom

The transcript discusses the Federal Reserve's shift from being data-dependent to market-dependent, influenced by market signals indicating lower growth and inflation. It explores the possibility of rate hikes in 2019, contingent on a positive feedback loop from the Fed's pause, boosting market and economic confidence. A six-month pause and relief from market and interest rate pressures are deemed necessary for the Fed to consider policy changes.

What major shift in the Federal Reserve's approach is discussed in the first section?

• From focusing on inflation to focusing on employment

• From being interest rate-dependent to inflation-dependent

• From being data-dependent to market-dependent

• From being market-dependent to data-dependent

What does the market suggest about growth and inflation according to the first section?

• Growth is unpredictable and inflation is volatile

• Growth is stable and inflation is increasing

• Growth is decreasing and inflation is weaker than expected

• Growth is increasing and inflation is stable

What is needed for the market to price in more rate hikes in 2019?

• A negative feedback loop from the Fed's pause

• A stable feedback loop from the Fed's pause

• No feedback loop from the Fed's pause

• A positive feedback loop from the Fed's pause

What impact does the Fed's pause have on the economy according to the second section?

• It decreases confidence in the economy

• It has no impact on the economy

• It raises confidence in the economy

• It destabilizes the economy

What conditions are necessary for the Fed to resume rate hikes in the latter half of 2019?

• A three-month pause and increased market pressures

• A six-month pause and increased interest rate pressures

• A six-month pause and relief from market pressures

• Immediate rate hikes without any pause