TD's Misra: Expect December Fed Rate Hike and One in 2017

The transcript discusses the Federal Reserve's interest rate hike plans, highlighting the challenges of normalizing rates amid global economic weaknesses. It explores the evolving definition of 'normalization' and the Fed's struggle with labor market slack. The conversation also covers inflation trends, noting a gradual increase in core services CPI and the impact of a strong dollar on import prices. The Fed's cautious approach to rate hikes is emphasized, with a focus on the need for wage inflation data before accelerating normalization.

What is one of the main challenges the Fed faces in normalizing interest rates?

• Strong fiscal policies worldwide

• Weak global economy

• High global economic growth

• Decreasing inflation rates

How has the Fed's definition of 'normal' interest rates changed over time?

• It has become more aggressive

• It has increased significantly

• It has remained constant

• It has been declining

What is a key factor the Fed considers when deciding on interest rate hikes?

• Global stock market trends

• Labor market slack

• Technological advancements

• Political stability

Which component of CPI has been weak due to a strong dollar?

• Housing

• Food and energy

• Healthcare

• Core services

What does the Fed want to see as a sign to adjust interest rates more aggressively?

• Increase in global trade

• Rise in wage inflation

• Decrease in unemployment

• Stable import prices