Three Things to Watch for in the Federal Reserve Decision

The video discusses three main areas of focus for investors: the dot plot, inflation and growth forecasts, and the balance sheet. The dot plot is crucial for understanding potential rate moves, with a likely single move expected. Inflation forecasts are being marked down, with Wall Street economists sharing a pessimistic view similar to the Fed's. The balance sheet's size and composition are key questions, with discussions on when tapering might end.

What is the primary focus of investors when considering the dot plot?

• The unemployment rate

• The GDP growth rate

• The number of rate moves this year

• The stock market performance

What would be required for the dot plot to show zero rate moves this year?

• A unanimous decision by all members

• Seven members moving their dots to zero

• A change in the inflation forecast

• An increase in GDP growth

How do Wall Street economists' views on inflation compare to the Fed's?

• They are indifferent

• They are more optimistic

• They are more pessimistic

• They are equally pessimistic

What does the blue line in the inflation forecast section represent?

• The stock market index

• The GDP growth rate

• The unemployment rate

• The break-even inflation rate

What is a key question regarding the Fed's balance sheet?

• The impact on unemployment

• The influence on stock market performance

• The size and composition of the balance sheet

• The effect on GDP growth