Fed’s George Says 2017 Rate Hikes Depend on Economy

The video discusses the disparity between hard and soft economic data, highlighting weak retail sales and housing starts. It explores the Federal Reserve's divided stance on interest rate hikes and the strategy of gradual normalization. The discussion includes plans for balance sheet normalization, emphasizing the need for careful consideration of timing and potential economic impacts. The speaker expresses concerns about the costs and benefits of the balance sheet policy, advocating for a cautious approach due to the lack of historical precedent.

In what ways can consumer spending influence the overall economy?

What concerns are associated with the potential negative effects of reducing the balance sheet?