JPMorgan's Frenkel Sees Two More Fed Rate Hikes in 2017

The transcript discusses the Federal Reserve's plan to reduce its balance sheet by four and a half trillion dollars and the potential for raising interest rates at least twice in the current year. The speaker expresses confidence in the Fed's credibility and the appropriateness of interest rate hikes given improved economic conditions, such as labor market improvements and growth in price pressures. The discussion also touches on the need for a gradual approach to balance sheet changes and the economic outlook for 2018.

What is the Federal Reserve's plan regarding its balance sheet?

• Reduce it by four and a half trillion dollars

• Maintain it at the current level

• Double it over the next year

• Increase it by four and a half trillion dollars

Why does the speaker believe the Fed's decision to raise interest rates is appropriate?

• To counteract inflation in the housing market

• Due to improved labor markets and economic growth

• To increase government revenue

• Because the stock market is at an all-time high

How does the speaker view the Fed's past actions?

• As too aggressive

• As too slow but gaining credibility

• As perfectly timed

• As irrelevant to current economic conditions

What is the speaker's stance on the number of interest rate hikes this year?

• No hikes should occur

• Four hikes are needed

• Only one hike is necessary

• Two hikes are safe, possibly three

What approach does the speaker suggest for changing the balance sheet?

• Aggressively selling assets

• Gradually not renewing expiring assets

• Immediately reducing it by half

• Buying more assets