Reading Between the Fed's Lines

The video discusses the Federal Reserve's strategy regarding the timing of unwinding its balance sheet, emphasizing a cautious approach. It highlights the Fed's plan to begin shrinking the balance sheet in October, with a potential interest rate hike in December. The discussion also covers the FOMC's view on inflation as transitory and their focus on asset valuations. The Fed's model suggests that inflation expectations are based on low unemployment rates, but some believe current inflation is not transitory, affecting the federal funds rate strategy.

What is the anticipated timeline for the Fed's actions regarding the balance sheet and interest rates?

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What are some of the price trends mentioned that suggest inflation may not be transitory?

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