Fed Is Doing the Right Thing With Rate Hikes, Says Whittier Trust's CIO

The video discusses the Federal Reserve's approach to rate hikes, emphasizing a gradual trajectory to avoid falling behind inflation. It highlights the current state of inflation and the Fed funds rate, noting that the real rate is negative, which is stimulative. The video also explores the potential impact of future rate hikes on the market, the role of technology in controlling inflation, and the implications of Fed policy on the yield curve. Overall, it suggests that the Fed's current policy is appropriate and that inflation and interest rates will remain stable.

What is the primary risk associated with the Fed's current approach to rate hikes?

• Focusing solely on inflation

• Not implementing any rate hikes

• Moving too slowly and falling behind

• Moving too quickly and aggressively

How many rate hikes are currently priced in by Fed funds futures?

• Two more rate hikes

• One more rate hike

• Three more rate hikes

• No more rate hikes

What recent technological advancement could influence inflationary pressures?

• Increased internet speeds

• Advancements in AI technology

• New smartphone models

• Apple's virtual SIM cards

What is the current target for the neutral Fed funds rate?

• Just above 2%

• Just above 3%

• Just above 4%

• Just above 5%

What could potentially prevent an inverted yield curve according to the discussion?

• Factors not specified in the discussion

• An increase in technological disruptions

• A rise in the 10-year bond yield

• A decrease in inflation