Why the Fed Might Raise Rates Four Times Next Year

The video discusses the Federal Reserve's hawkish projections for rate hikes, with four expected next year compared to the Fed's projection of three. The key factor influencing these projections is the inflation outlook. The market is hesitant to adjust its pricing until more signs of inflation are evident. The Fed is expected to signal three hikes in 2018, aligning closely with market expectations, though the market has priced in slightly less. The discussion also covers potential dissenters and the gap between market pricing and Fed expectations.

What is the primary factor influencing the number of rate hikes projected for next year?

• Unemployment rates

• Inflation outlook

• Stock market performance

• Global trade agreements

How many rate hikes are analysts expecting compared to the Fed's projection?

• Two hikes compared to one

• Five hikes compared to four

• Three hikes compared to two

• Four hikes compared to three

What is the main reason for the market's reluctance to adjust to the Fed's projections?

• Lack of confidence in the Fed

• Uncertainty in global markets

• Insufficient signs of inflation

• Political instability

What is the expected market reaction to the December rate hike?

• Significant market volatility

• No major reaction

• Increase in stock prices

• Decrease in bond yields

How many rate hikes does the Fed signal for 2018 in their dot plot?

• Four

• Three

• Two

• One