25 Bps Fed Rate Hike Makes Sense Right Now: BofA's Gapen

The transcript discusses the Federal Reserve's monetary policy outlook, including a potential 25 basis point rate hike and ongoing balance sheet runoff. It addresses the impact of the SVB issue on financial conditions, highlighting the tightening of conditions and the resilience of certain economic sectors. The conversation also explores psychological elements influencing the Fed's decisions, particularly in light of recent stress events. Finally, it speculates on how Chairman Powell's testimony might differ given current economic stresses, emphasizing a balanced approach to monetary policy.

What does the speaker suggest about the Federal Reserve's ability to manage financial stress and monetary policy simultaneously?

How might the Federal Reserve's approach to rate increases change in light of recent events?