What to Watch for in the Fed Rate Decision

The video discusses the Federal Reserve's gradualist approach to normalization, emphasizing that inflation is nearing the Fed's target but not yet mission accomplished. It highlights that the Q2 GDP growth of 4.1% is not sustainable and anticipates moderation. The impact of trade tensions on financial conditions and the Fed's decision-making process is explored, with a focus on the yield curve and equity markets. ADP numbers suggest minimal impact from trade tensions on jobs. Market reactions to Treasury announcements and job gains are also analyzed, indicating higher borrowing costs and persistent Treasury yields.

How do fiscal tailwinds from tax reforms affect economic growth?

What indicators should be monitored to assess the impact of trade concerns on the economy?

What are the implications of the recent job gains on the economy's growth and inflation?