December Hike Gets Us Closer to Neutral, Says Bank of Singapore's Jooste

The video discusses the market's pricing of Fed rate hikes, noting a divergence from the Fed's dot plot projections. It highlights the market's skepticism towards growth and the Fed's focus on normalizing policy amid tight labor markets. The concept of a 'neutral' policy is explored, with projections for future rate hikes and balance sheet reductions.

What is the significance of the labor market and price pressures in the Fed's forecasts?

What does the term 'neutral' refer to in the context of monetary policy?