Daybreak Europe Show Open: Fed Sees Two Hikes by End of 2023

The transcript discusses the Federal Reserve's journey of retreat, focusing on potential rate hikes in 2022 and 2023. It highlights the ongoing discussions about tapering and the persistence of inflation, which may not be as transitory as previously thought. The conversation also touches on market conditions, potential policy mistakes, and the risks posed by new COVID variants.

What is the Federal Reserve considering for 2022 according to the discussion?

• Reducing interest rates

• Implementing seven rate hikes

• Increasing quantitative easing

• Introducing new monetary policies

What does the term 'tapering' refer to in the context of the Federal Reserve's discussions?

• Introducing new fiscal policies

• Expanding monetary support

• Increasing interest rates

• Reducing asset purchases

What concern is raised about inflation in the discussion?

• It is expected to decrease rapidly

• It may be more persistent than anticipated

• It is not a concern for the Federal Reserve

• It is solely driven by external factors

What does the phrase 'make hay while the sun shines' imply in the context of market conditions?

• Invest only during economic downturns

• Avoid investing during volatile times

• Wait for market stability before investing

• Take advantage of favorable market conditions

What potential risk is compared to a new COVID variant in the discussion?

• A sudden market crash

• A policy mistake by the Federal Reserve

• A decrease in consumer spending

• A rise in unemployment rates