Prestige Economics' Expects 4 Fed Rate Hikes in 2018

The video discusses Goldman Sachs' prediction of four rate hikes next year, which aligns with the speaker's forecast due to inflationary pressures from a tightening labor market. The unemployment rate is decreasing, contributing to inflation. Fiscal stimulus, such as tax cuts, could exacerbate inflation, prompting the Fed to act. The yield curve's flattening is examined, with the Fed's focus on inflation and labor market conditions. The Fed may raise rates four times next year, even if it flattens the yield curve.

What concerns might arise if fiscal stimulus is introduced in a tight labor market?

What does the text suggest about the relationship between inflation and the yield curve?