State Street's Evans Says Fed Is in a Good Situation

The video discusses the separation of balance sheet policy and rate hike policy, emphasizing the distinct nature of balance sheet reduction from inflation concerns. It explores the potential impact of rate hikes on the balance sheet and the strategic advantage of reducing the balance sheet without hiking rates. The discussion also touches on the debt ceiling and its minimal impact on the Fed's balance sheet plans.

What does the speaker imply about the market's perception of the rate hike rhetoric?

How does the speaker view the situation of hiking rates while reducing the balance sheet?