Cumberland Says Fed Should Reduce Balance Sheet Now

The transcript discusses the need for interest rate hikes and balance sheet reduction to stabilize the market. It argues for immediate action on balance sheet reduction to release funds into the market, affecting interest rates and reducing arbitrage. The cautious approach in proposals is noted, with a focus on transparency and gradual reinvestment. The discussion anticipates questions for Janet Yellen on progress and suggests a stronger move towards balance sheet normalization.

Why is it important to raise interest rates according to the first section?

• To reach a point where balance sheet reduction can begin

• To boost consumer spending

• To increase inflation

• To decrease market volatility

What is the suggested action regarding the balance sheet in the second section?

• Increase the balance sheet

• Start the reduction immediately

• Postpone the reduction

• Wait until 2018 to decide

What effect would releasing 500 billion into the marketplace have?

• Increase inflation

• Decrease interest rates

• Stabilize the currency

• Put upward pressure on interest rates

What approach is being taken in the proposals for balance sheet normalization?

• Aggressive reduction

• Cautious and transparent

• Complete reinvestment

• Immediate liquidation

What is the proposed stronger move for balance sheet normalization?

• Increase interest rates

• Start the normalization process

• Reduce market transparency

• Delay the process