UBS Chairman Weber Sees Two More Fed Hikes in 2017

The video discusses the Federal Reserve's recent dovish rate hike, which aligns with their projections and is largely priced in by the market. The Fed is expected to continue with gradual rate hikes, focusing on domestic economic performance while considering global trade impacts. The exchange rate is a data point, not a decision variable, for the Fed. The US fiscal policy under the Trump administration is expected to include tax cuts financed by reduced expenditure, raising concerns about environmental and agricultural subsidies. The overall approach aims to avoid increasing national debt.

What was the main reason for the recent increase in inflation according to the Federal Reserve?

• A surge in consumer spending

• A rebound in oil prices

• Increased government spending

• A rise in housing costs

How do central banks like the Fed and ECB view exchange rates in their decision-making process?

• As a secondary target

• As a data point, not a decision variable

• As a primary decision variable

• As the main focus of their policies

What is the expected approach of the Trump administration towards financing tax reductions?

• Issuing more debt

• Borrowing from international markets

• Increasing taxes on the wealthy

• Reducing government expenditure

Which sector is surprisingly affected by the Trump administration's budget cuts?

• Defense

• Agriculture

• Education

• Healthcare

What is the implication of the Trump administration's budget on the global commitment to reduce carbon emissions?

• It raises concerns internationally

• It leads to increased emissions

• It strengthens the commitment

• It has no impact