Carpenter, Brenner on Possible 2018 Fed Rate Hikes

The video discusses the Federal Open Market Committee's (FOMC) economic projections and the impact of a fiscal stimulus package on potential rate hikes. It highlights the disagreement between Republicans and economists on economic growth and the Fed's need to adjust its outlook. The market anticipates between one and four rate hikes, with factors like equity corrections potentially influencing these decisions. The Fed's strategy focuses on future inflation expectations rather than current or past inflation rates.

What was the FOMC's stance on the fiscal stimulus package a year ago?

• None supported it.

• It was unanimously opposed.

• Only about half supported it.

• All members supported it.

What is the market's expectation for the number of rate increases next year?

• More than four

• Between three and four

• Exactly three

• Between one and two

What could potentially slow down the Fed's rate hikes next year?

• A new tax cut package

• A rise in unemployment

• An equity correction

• A change in government

On what basis is the Fed currently deciding to hike interest rates?

• Current inflation levels

• Global economic conditions

• Past inflation trends

• Future inflation expectations

What recent CPI data point is influencing the Fed's confidence in inflation trends?

• A drop to 0.0

• A decrease of 0.1

• A stabilization at 0.2

• An increase of 0.5