Fed Can't Live Up to Hike Expectations: Schwab's Jones

The video discusses the Federal Reserve's strategies regarding interest rate hikes and balance sheet management. It explores the potential for three rate hikes, the implications of balance sheet runoff, and the impact on the yield curve. The discussion includes the possibility of a yield curve inversion and how the Fed might use its balance sheet to prevent it. The video also covers market expectations, economic slowdown, and the challenges the Fed faces in rapidly hiking rates.

What is the significance of the spread market and nominal yield in the context of interest rate hikes?

In what ways might the current economic slowdown impact the Fed's ability to raise rates?