Why Are Expectations of a Fed Hike Falling?

The video discusses the current economic situation in the US, focusing on weak first-quarter growth and its impact on Federal Reserve rate hikes. Initially, four rate hikes were expected, but this has been reduced due to low inflation and wage growth. The video also highlights hidden unemployment and the effects of the US dollar's fluctuations on inflation. Despite falling unemployment, wage increases are limited to the lowest-paid segments, influenced by minimum wage laws. The recent weakening of the dollar may slightly boost inflation, but no significant pressures are developing.

What was the initial number of rate hikes expected by the Fed at the start of the year?

• Four

• Five

• Three

• Two

What is one reason for the lack of significant wage increases?

• Increased unemployment

• Strong economic growth

• Minimum wage adjustments

• High inflation rates

What is the current state of hidden unemployment according to the transcript?

• It is rapidly decreasing

• It has been completely resolved

• It is still present in the system

• It is increasing significantly

How did the stronger U.S. dollar last year affect imported prices?

• Had no effect

• Made them volatile

• Decreased them

• Increased them

What is the expected impact of recent dollar weakness on inflation?

• No change

• Slight strengthening

• Dramatic decrease

• Dramatic increase