Fed Hike Probability Close to 100% in Dec.: Collins

The transcript discusses the Federal Reserve's cautious stance due to election uncertainties and potential market reactions. It highlights the historical context of the Fed's actions around elections and the likelihood of a December rate hike. The discussion also covers the impact of political and global factors, such as Brexit and Chinese economic conditions, on the Fed's decision-making process.

What is the Federal Reserve's typical stance on making rate changes close to elections?

• They frequently change rates close to elections.

• They avoid making changes close to elections.

• They decrease rates before elections.

• They always increase rates before elections.

What is the market's expectation for a rate hike in December?

• 50% chance of a hike

• 100% chance of a hike

• 70% chance of a hike

• No chance of a hike

Which global factor is mentioned as potentially influencing the Fed's decision?

• Japanese economic policies

• Indian market trends

• Chinese economic conditions

• Australian trade agreements

Why might the Fed decide to raise rates after the election?

• To stimulate the economy

• To prepare for rising inflation

• To decrease unemployment

• To counteract a market collapse

What is the Fed's primary concern when considering rate changes post-election?

• Short-term market reactions

• Long-term economic impact

• Immediate policy effects

• Political stability