Wait-and-See: What Are the Risks to Raising Rates?

The transcript discusses the Federal Reserve's cautious approach to raising interest rates despite low unemployment and moderate inflation. It highlights the Fed's focus on risk management and the impact of their policies on wage growth and investment, particularly in the housing sector. The discussion also touches on the effects of quantitative easing and external factors like Brexit on the US economy.

What is the main reason the Fed is hesitant to raise interest rates despite low unemployment?

• They are concerned about inflation.

• They are focused on reducing the national debt.

• They want to ensure stronger economic growth.

• They are waiting for a change in government policy.

How does the current Fed's approach to risk management compare to Greenspan's era?

• The current Fed is less cautious than Greenspan.

• The current Fed has abandoned risk management.

• The current Fed is more focused on inflation than risk management.

• The current Fed has taken risk management to a new high.

What is the current core CPI inflation rate mentioned in the discussion?

• 3.0%

• 2.6%

• 2.2%

• 1.5%

What is one reason given for the lack of growth in wages?

• High unemployment rates

• Lack of inflation

• Excessive government spending

• Increased foreign competition

What is a significant factor affecting the housing sector's recovery?

• High interest rates

• Demographics

• Government regulations

• Foreign investments