Goldman's Hatzius Does Not Expect Fed Tapering to Speed Up

The video discusses the composition of a 'Dream Team' in monetary policy, highlighting the alignment of views between Chair Powell and Vice Chair Brainard. It covers market expectations for rate hikes in 2022, consistent with economic forecasts. The possibility of a faster taper is explored, with inflation being a key factor. The discussion also touches on the prioritization of inflation over the labor market in policy considerations, reflecting current concerns in Washington.

How does the speaker describe the alignment between Chair Powell and Vice Chair Brainard?

• They have conflicting views.

• Their views are expected to mesh well.

• They have no significant influence.

• Their views are completely opposite.

What is the market's expectation for a rate hike in November 2022?

• A second rate hike is expected.

• A rate cut is expected.

• A rate hike is expected in December instead.

• No rate hike is expected.

What is the speaker's expectation regarding the pace of tapering?

• Tapering will be halted.

• The current pace will likely be maintained.

• Tapering will be accelerated significantly.

• A faster taper is expected.

What condition might lead to a faster taper according to the speaker?

• A decrease in inflation.

• A decrease in employment rates.

• Higher inflation in trending categories.

• A stable inflation rate.

What is the current priority for Washington according to the speaker?

• Healthcare reforms.

• The labor market.

• Foreign policy.

• Inflation concerns.