Morning Meeting: Trump and the Fed

The video features Ward McCarthy discussing potential changes in the Federal Reserve Board under the Trump presidency, including the impact of two open spots on the Fed board. It explores the implications of a less dovish FOMC, the effects of low interest rates on the economy, and the anticipated acceleration of inflation. McCarthy predicts economic growth and market volatility in 2017, driven by Trump's fiscal policies and the potential for faster rate normalization.

What significant change could the Trump presidency bring to the Federal Reserve Board?

• Reduction in the board's decision-making power

• Appointment of two new governors

• Introduction of new monetary policies

• Increase in the number of board members

How might the Federal Reserve's approach change under a Trump presidency?

• It could become more dovish

• It could become more hawkish

• It could focus more on international policies

• It could reduce interest rates further

What has been a primary driver of recent inflation acceleration?

• Increased consumer spending

• Government fiscal policies

• Rising commodity prices

• Higher interest rates

What is a potential risk for the economy in 2017 under Trump's presidency?

• Higher inflation rates

• Slower economic growth

• Reduced fiscal spending

• Decreased market volatility

What is expected to happen to US inflation by mid-2017?

• It will stabilize at 2%

• It will exceed 4%

• It will decrease to 1%

• It will reach around 2.5%