Credit Suisse's Soss Says Fed Has Balance Sheet 'Hang-Up'

The video discusses market expectations for the next rate increase, with opinions varying between September, December, and next year. It highlights the Fed's acknowledgment of inflation issues and the separation of interest rate decisions from balance sheet considerations. The Fed's goals regarding unemployment and inflation are examined, with a focus on how these influence market behavior. The video also addresses open questions about the balance sheet and its lack of market attention, emphasizing the need for clarity on terminal rates and balance sheet size.

What are the implications of the market's expectations on the Fed's decisions?

What questions remain unanswered regarding the Fed's future actions?