What to Watch for in Federal Reserve, Bank of England Rate Decisions

The video discusses the Federal Reserve's current stance on monetary policy, focusing on Treasury bill purchases and the repo market. It explores the interest on excess reserves and potential rate changes. The Bank of England's position amid Brexit uncertainty is also analyzed, highlighting recent economic indicators that may influence their decisions.

What is the Federal Reserve's current stance regarding Treasury bill purchases?

• They plan to stop immediately.

• They will continue at least through the second quarter.

• They have already stopped.

• They will increase the purchases significantly.

What is the potential action the Fed might take regarding the effective Fed funds rate?

• Increase it by 25 basis points.

• Increase it by 100 basis points.

• Decrease it by 50 basis points.

• Keep it unchanged.

What has been the trend of the effective Fed funds rate compared to the interest on excess reserves?

• It has consistently been lower.

• It has been equal to the IOER.

• It has consistently been higher.

• It has traded below the IOER recently.

What recent economic indicators influenced the Bank of England's decision on interest rates?

• Rising unemployment rates.

• Decreasing inflation rates.

• Improved PMI and confidence numbers.

• Declining GDP numbers.

What was the initial expectation for the Bank of England's interest rate decision before the recent surveys?

• To cut rates.

• To hold rates steady.

• To eliminate rates.

• To increase rates.