What Impact Will U.S. GDP Numbers Have on Fed Policy?

The transcript discusses the impact of GDP revisions on the economic outlook and the Federal Reserve's decision-making process, particularly under Janet Yellen's leadership. It highlights the importance of various economic indicators, such as retail sales and consumer spending, in shaping interest rate decisions. The discussion also covers market reactions to potential Fed moves, historical market volatility, and the Fed's communication strategy to prepare markets for changes in monetary policy.

What is the primary focus of the Federal Reserve when considering changes to monetary policy?

• Housing inventories

• Second-quarter growth indicators

• Net trade

• GDP revisions

Which tool is mentioned as useful for assessing market expectations regarding Fed movements?

• Federal Reserve website

• Reuters

• Bloomberg Terminal

• Wall Street Journal

What historical event is mentioned as a cause of market volatility?

• US presidential elections

• Brexit

• China devaluing its currency

• Oil price fluctuations

What economic indicator is Janet Yellen particularly interested in when considering rate hikes?

• Wage inflation

• GDP growth

• Net exports

• Retail sales

Under what condition might the Fed decide to raise rates despite market volatility?

• If consumer numbers are strong

• If housing inventories increase

• If international markets stabilize

• If GDP numbers are revised upwards