Three Must-See Charts About the Fed's Rate Hike Path

Three Must-See Charts About the Fed's Rate Hike Path

Assessment

Interactive Video

Business, Social Studies, Performing Arts

University

Hard

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The video discusses the market's reaction to the Fed's decisions, highlighting the Fed's cautious approach and the low volatility following their actions. It explores Eric Rosengren's dissent and its potential reasons, including the impact of the election. The year ahead outlook is analyzed, with expectations of a rate hike in December and minimal tightening next year. The concept of euro dollar butterflies is explained, focusing on yield curve analysis and the lack of risk premium in the market.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contribute to the cautious approach of the Fed as discussed in the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the market's expectation of a rate hike in December influence trading behavior?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the significance of the 'dots' mentioned in relation to the Fed's outlook for 2017.

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the term 'euro dollar butterflies' refer to, and how is it related to the Fed funds target?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the current lack of risk premium in the markets indicate about traders' expectations?

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