The Prospects of Fed Rate Hikes in 2017

The video discusses the Federal Reserve's approach to managing interest rate hikes and the balance sheet. It highlights the Fed's strategy to normalize rates while minimizing market distress. The discussion includes adjustments in economic forecasts and the timing of balance sheet changes, with a focus on maintaining unemployment rates within target levels.

What dual challenge is the Federal Reserve facing according to the discussion?

• Reducing government spending and increasing exports

• Lowering unemployment and increasing GDP

• Increasing interest rates and shrinking the balance sheet

• Raising taxes and reducing inflation

What is the Federal Reserve's approach to minimize market distress?

• Implementing sudden and large rate hikes

• Gradually unwinding the balance sheet

• Increasing taxes on financial institutions

• Reducing government debt

How many more rate hikes is High Frequency Economics expecting before a pause?

• One more hike

• Two more hikes

• Three more hikes

• No more hikes

What economic indicator is mentioned as a concern for the Fed's timing?

• GDP growth

• Trade balance

• Unemployment rate

• Inflation rate

What is the potential consequence of the Fed's actions on job creation?

• Increase in job creation

• Decrease in job creation

• Abrupt stop in job creation

• No impact on job creation