Barclays' Gapen Says Fed Waiting for an Inflation Rebound

The video discusses the Federal Reserve's considerations for potential rate increases, focusing on inflation targets and labor market dynamics. It highlights the importance of inflation in determining rate hikes and examines the current state of wage growth in the U.S. economy. The discussion also covers factors affecting wage growth, such as soft inflation, productivity, and nominal wage rigidity, and their implications for economic activity and consumption growth.

What is the Federal Reserve's target inflation rate before considering a rate hike?

• 2.5%

• 1%

• 1.5%

• 2%

What is the current year-over-year wage growth rate mentioned in the video?

• 1.5%

• 4.5%

• 3.5%

• 2.5%

What is the expected wage growth rate by the end of the cycle?

• 2%

• 2.5%

• 3.5%

• 3%

Which of the following is NOT mentioned as a factor affecting wage growth?

• Soft inflation

• High unemployment

• Soft productivity

• Nominal wage rigidity

What is the current nominal income growth rate?

• 4.5%

• 3.5%

• 6.5%

• 5.5%