Kaplan Wants to See 'Hawkish Pause' by Federal Reserve

The transcript discusses the FOMC meeting and the possibility of the Fed pausing rate hikes. Despite rate increases, the economy remains strong, partly due to fiscal programs. The debate on data dependency in decision-making is highlighted, with a focus on the backward-looking nature of data. The impact of fiscal policy on the Fed's actions and the diminishing returns of further rate increases are also discussed, suggesting a preference for a 'hawkish pause' approach.

What is one reason the economy has remained strong despite rate increases?

• An increase in unemployment rates

• The remnants of fiscal programs

• A decrease in consumer spending

• The Fed's forward guidance

Why does the speaker caution against being too data dependent?

• Data is backward-looking

• Data is irrelevant to economic decisions

• Data is always accurate

• Data is forward-looking

What does an inverted yield curve suggest about future rate increases?

• They will lead to higher inflation

• They will boost small businesses

• They may have diminishing returns

• They will significantly impact large companies

How do rate increases affect small and midsize businesses according to the speaker?

• They see no impact

• They experience increased investment

• They are disproportionately hurt

• They benefit from lower borrowing costs

What is the speaker's stance on further rate increases?

• They should be ignored

• They should be reduced immediately

• They should be paused with caution

• They should be aggressively pursued