How Blurred Is Fed Outlook by Trump's Plans?

The video discusses the Federal Reserve's upcoming meeting and the expected rate hikes, aligning with market predictions. It explores potential risks, including Trump's spending plan and its impact on economic forecasts. The US economy shows signs of fragility, with growth challenges in 2017 and 2018. The Fed may undergo significant changes in 2018, potentially becoming more hawkish. Oil prices are a key factor in inflation forecasts, with potential implications for the Fed's reaction.

What is the market's expectation for the Fed's rate hikes next year?

• One rate hike

• No rate hikes

• Two rate hikes

• Three rate hikes

Why might the Fed take a cautious approach regarding Trump's spending plan?

• They disagree with the plan

• They are waiting for more details

• They have already implemented similar plans

• They want to support the plan immediately

What significant change is expected at the Fed in 2018?

• Potential change in leadership

• Reduction in interest rates

• Increase in the number of governors

• Introduction of a new monetary policy

How might rising oil prices affect the Fed's inflation forecasts?

• They could pose an upside risk to inflation

• They could lead to lower inflation

• They have no impact on inflation

• They could stabilize inflation

Which inflation measure does the Fed primarily focus on?

• Producer Price Index

• Core PCE

• Core CPI

• Headline CPI