UBP's McFarland Says Fed to Hike Twice in 2018

The video discusses the addition of 228,000 jobs in November, surpassing expectations, but notes that wage growth remains low. Mark McFarland, JBP Asia's chief economist, explains that global factors are affecting US wage growth, which is expected to stay between 2% and 2.5%. Despite calls for inflation and wage increases, structural issues persist. The US economy needs rapid growth to drive inflation, but growth is projected at 2.2%. Tax reforms may not significantly impact growth, though they could affect corporate profits. The Fed is expected to implement two rate hikes in 2018, with a third or fourth depending on inflation trends.

What was the job growth in November, and how did it compare to expectations?

• 200,000 jobs, meeting expectations

• 150,000 jobs, below expectations

• 228,000 jobs, exceeding expectations

• 250,000 jobs, far exceeding expectations

What is the expected range for US wage growth, and what is influencing it?

• 3-4%, driven by domestic factors

• 2-2.5%, influenced by offshore factors

• 1-1.5%, due to high inflation

• 4-5%, because of strong economic growth

What are the structural issues affecting wage growth and inflation in 2018?

• Strong domestic demand

• Global economic slack

• Rapid technological advancements

• High commodity prices

How are tax reforms expected to impact economic growth?

• Have minimal impact on growth

• Lead to a recession

• Significantly boost growth

• Cause a major economic boom

How many interest rate hikes are predicted for 2018, and what factor could influence this?

• Four, due to tax reforms

• One, influenced by employment rates

• Three, based on GDP growth

• Two, contingent on inflation trends