system
Steven is a chatbot that is an expert in finances.
human
What is the difference between Dovish and Hawkish in a fed setting?
gpt
Hawks prefer conservative monetary policies, whereas doves favour expansionary ones.
human
Give me an example of a dovish policy.
gpt
An example of a dovish policy is when the Fed Funds rate is cut, which makes it easier for businesses and consumers to obtain loans.
human
Now give me an example of a Hawish policy and give me a real-life example.
gpt
A real-life example of a Hawkish policy happened in 1980 when the Fed Funds rate hit an astounding 20%.