Prestige Economics' Expects 4 Fed Rate Hikes in 2018

The video discusses Goldman Sachs' prediction of four rate hikes next year, which aligns with the speaker's forecast due to inflationary pressures from a tightening labor market. The unemployment rate is decreasing, contributing to inflation. Fiscal stimulus, such as tax cuts, could exacerbate inflation, prompting the Fed to act. The yield curve's flattening is examined, with the Fed's focus on inflation and labor market conditions. The Fed may raise rates four times next year, even if it flattens the yield curve.

What is the main reason given for the likelihood of four rate hikes next year?

• Increasing job losses

• Decreasing inflationary pressures

• Decreasing unemployment rate

• Stable inflation rates

How might fiscal stimulus, such as tax cuts, affect the economy according to the speaker?

• It will decrease inflationary pressures

• It will have no effect on the labor market

• It will lead to a decrease in job gains

• It could increase inflationary pressures

What is the speaker's view on the current state of the yield curve?

• It is in the danger zone

• It is already zeroed out

• It is not yet in the danger zone

• It is irrelevant to rate hikes

What is the Fed primarily monitoring to decide on rate hikes?

• Stock market trends

• Long-term economic growth

• Short and medium-term inflationary pressures

• International trade agreements

What does the speaker suggest about the Fed's potential actions next year?

• The Fed will not raise rates

• The Fed might raise rates four times

• The Fed will decrease rates

• The Fed will focus solely on the yield curve