BMO's Gallo Sees Three 2017 Fed Moves in 'Hawkish Hike'

The transcript discusses the Federal Reserve's potential rate hike in March, driven by market pressures and inflation nearing target levels. It highlights the Fed's communication strategy and its impact on market expectations. The US economy is performing well, but GDP growth remains mediocre, prompting the Fed to act quickly. Inflation data is crucial for future decisions, and the dollar is expected to appreciate. Political risks in Europe may affect the dollar's strength.

What are the potential risks associated with unanchored inflation expectations?

How might political risks in Europe affect the US dollar's performance?