Fed Is on 'Pretty Steady Path,' Wells Fargo's Schumacher Says

The video discusses the Federal Reserve's steady approach to interest rate hikes amidst a tumultuous market. It highlights the Fed's plans to continue raising rates, aligning with their projections, and the potential impact on the market. The concept of interest on excess reserves is explained, emphasizing its importance in maintaining the target range for Fed funds. Concerns about the right level of excess reserves and their effect on the banking system are also addressed, noting the experimental nature of finding the optimal balance.

What is the Federal Reserve's projected plan for interest rate hikes in the coming year?

• One hike in December and three next year

• Two hikes in December and one next year

• No hikes planned

• One hike in December and two next year

What is the significance of the effective rate approaching the interest rate on excess reserves?

• It indicates a stable market

• It reflects an increase in inflation

• It suggests a need for policy adjustment

• It shows a decrease in market liquidity

Why is the Fed considering cutting the interest on excess reserves?

• To boost economic growth

• To decrease the money supply

• To align the effective rate with the target range

• To increase inflation

What is a major concern regarding excess reserves in the banking system?

• They are irrelevant to the economy

• They are too low

• They are too high

• They are perfectly balanced

How is the Fed approaching the management of excess reserves?

• With a fixed strategy

• By ignoring market reactions

• By following a strict policy

• Through an experimental process