BMO Family Office's Schleif on Fed Decision, Market Reaction

The video discusses the Federal Reserve's balanced messaging under Jay Powell, emphasizing the strength of the economy as a reason for potential interest rate hikes. It compares current economic conditions with the Volcker era, noting that current rates are much lower. The discussion also covers global issues like the Ukraine conflict and supply chain disruptions affecting market dynamics. Finally, it highlights data points indicating entrenched inflation, such as wage increases and low unemployment rates.

What role does balanced messaging from the Fed play in market perceptions of inflation?

How has the focus of the Fed shifted over the past 6 to 12 months?

What factors contribute to inflation being described as 'sticky'?

In what ways might the current economic conditions allow for rate increases by the Fed?

What data points should be monitored to assess if inflation is becoming entrenched?