FOMC Is Focused on the Real Economy, Says Former Fed President Lockhart

The transcript discusses the Federal Reserve's approach to monetary policy in 2019, highlighting the increased flexibility in decision-making due to economic uncertainties. Jay Powell's statements emphasize data dependency and the focus on the real economy. The impact of global economic factors like trade wars and Brexit on the US economy is considered, though the US is seen as somewhat insulated. Market reactions to rate hikes and balance sheet policies are analyzed, with concerns about potential overshooting of rate hikes. The discussion concludes with varying opinions on future rate hikes and the importance of being data-driven.

How does the global economy impact the U.S. economy according to the discussion?

What concerns does the Fed have regarding future rate hikes?

What would be the implications of overshooting in rate hikes?